Chillin' out till it needs to be funded
The settlement reached before dawn today will likely be extended to the next 9 largest servicers making the settlement grow to $30 bln from $26 bln. Further , banks will claim credit throughout the year for each action undertaken under the pact, and as the LA Times puts it, the total amount of assistance to borrowers could increase by $15 bln to $40 bln and more when the other nine mortgage servicers sign up. Califfornia is going to annoounce its commitment to the settlement likely ‘walking away’ with $17 bln from the settlement for her state alone.
The complex series of credits are designed to encourage the servicers to make payments over the next year to speed assistance to struggling homeowners and quickly aid the housing market.