Take a Look at the Settlement

[babylonsister]

http://www.boomantribune.com/story/2012/2/9/131842/1584

Take a Look at the Settlement

by BooMan
Thu Feb 9th, 2012 at 01:18:42 PM EST


I don't know about the monetary value of the National Mortgage Settlement, but the new consumer protections totally kick ass. When Obama's legacy is discussed, I suspect he'll be known as the "Consumer Protection President." If he serves out his two terms, we'll see a revolution in how banks, payday loaners, check-cashing joints, credit card companies, and others interact with the public. This is by far the most unambiguously progressive element of his presidency.

Lots of info here:
http://www.nationalmortgagesettlement.com/about

[davidpdx]

1. Let's hope so

I know some states have taken on the payday loan scam artists and won.

[WonderGrunion]

2. From the settlement website (for those scared of blue links)

http://www.nationalmortgagesettlement.com/about

KEY PROVISIONS OF THE SETTLEMENT

Immediate aid to homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide.

State attorneys general anticipate the settlement’s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.

Immediate aid to borrowers who are current, but whose mortgages currently exceed their home’s value. Borrowers will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.

Immediate payments to borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process. $1.5 billion will be distributed nationwide to some 750,000 borrowers.

Immediate payments to signing states to help fund consumer protection and state foreclosure protection efforts.

First ever nationwide reforms to servicing standards; something that no other federal or state agency has been able to achieve. These servicing standards require single point of contact, adequate staffing levels and training, better communication with borrowers, and appropriate standards for executing documents in foreclosure cases, ending improper fees, and ending dual-track foreclosures for many loans.

State AG oversight of national banks for the first time. Something no court could award.

* National banks will be required to regularly report compliance with the settlement to an independent, outside monitor that reports to state Attorneys General.
* Servicers will have to pay heavy penalties for non-compliance with the settlement, including missed deadlines.