The Banking and Strategy Initiative

Chillin' out till it needs to be funded

$25 bln settlement with US AGs for 8 mln mortgages

The Top 5 banks JP Mrgan, BofA, Wells Fargo, Citi and Ally have agreed to sign a settlement with the AGs apart from agreeing to reform Foreclosure processes in the next few weeks. Thus the firms will cull out robo signing from the procedures, and rewrite a $20000 dicount into one million existing mortgages

According to a Monroe county paper

The proposed federal settlement agreement forces the big banks to act as local banks used to before the age of mortgage selling and bundling: Local lending officers either knew or found out the circumstances of their borrowers, and made sound judgments based on their ability to pay. With the advent of giant lending institutions, the practice of assessing individual borrowers’ financial profiles went away. The national agreement will require large lenders to assess individual borrowers’ circumstances and address each borrower’s ability to recover on the mortgage.

 

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This entry was posted on January 26, 2012 by in Amitonomics, Bailout Nation, Banking, US and tagged , , , , , , , .

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