Feds announce $25B settlement over foreclosure abuse

[FoxNews.com]

Published February 09, 2012

AP – Feb. 2, 2012: Attorney General Eric Holder testifies on Capitol Hill.

WASHINGTON –  Federal officials announced Thursday that 49 states have accepted a $25 billion foreclosure-abuse settlement with the five largest mortgage lenders — a deal that primarily helps underwater homeowners but pays just $2,000 to those already wrongly foreclosed upon.

The bulk of the deal requires the banks to reduce some loans and refinance mortgages for underwater borrowers. Oklahoma was the lone holdout to the agreement.

President Obama described the deal as a “landmark settlement” that would “begin to turn the page on an era of recklessness” while speeding relief to hard-hit homeowners.

It is the biggest settlement involving a single industry since a 1998 multistate tobacco deal. Under the agreement, five major banks — Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial — will reduce loans for nearly 1 million households.

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February 9, 2012 | Categories: 2012 Election, Agency Regulation, America's Freedoms, Congress, Constitutional Responsibilities, Constitutional Rights, Consumer Issues, Corruption, Corruption in Government, Deficit, Due Process of Law, Economic Security, Economic Terrorism, Election 2012, Elections Politics, Financial Sector, Government, GSE, Housing Crisis, Illegal Election Funding, Liberals Big Spending and Taxes, Manufactured Crisis, Media Corruption, National Debt, National Security, New Media News, Politically Intentioned Crisis, Politics, Poll Numbers, POTUS Deception, POTUS Elibility Issue, Progressives pushing for Marxism/Socialism, Radical Liberal Progressive Left, Redistribution of Wealth, Rejecting Political Correctess, Stock Market, Banks & Financial Institutions, The Economy, United States Court System | Tags: "landmark settlement", $25B settlement, capitol hill washington, economy, Eric Holder, federal government, foreclosure abuse, hard-hit homeowners, JPMorgan Chase, lone holdout, mortgages, relief, Sub-Prime loans | Leave A Comment »