Banks agree to $1.5 billion mortgage settlement

June 5, 2013

foreclosureMore than 200,000 Californians will each receive checks worth nearly $1,500 this month as part of a $1.5 billion national mortgage settlement, the state attorney general’s office said Tuesday.

Homeowners who successfully filed claims saying they were victims of wrongful foreclosures will each receive checks for $1,480 from the national settlement administrator, Rust Consulting. The administrators will begin sending out checks next week.

The recipients are homeowners who had their mortgages serviced by one of the five major banks involved in the settlement. Ally Financial Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. were accused of misconduct in servicing mortgages.

Primarily, the lenders were found to have lost refinancing applications or filed notices of default while they also considered alternatives to foreclosure, a practice that is illegal in California.

 


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15 Comments

  1. whoami says:

    Well I supose it’s better than nothing. They foreclosed on my home and auctioned it
    for 10,000 more than I owed. Never got a penny of it.

    (0) 0 Total Votes - 0 up - 0 down
  2. karma2come says:

    If only 1,500 dollars could make up for all those who lost their homes, not to mention all the costs they had related to foreclosure! I know many still trying to save their homes! It’s such a mess, this amount isn’t going to to anything for people who were foreclosed upon. They should have asked for wiping the debts of credit instead! At least that could allow people to begin again.

    (2) 2 Total Votes - 2 up - 0 down
    • r0y says:

      While I admire your passion, the whole notion of debt-forgiveness would have been even worse.

      Think about it. You bought your home 20 years or so ago. Made every payment, stuck to the amort-schedule, etc. You have about 10 years left, and your foolish neighbor that bought more house than s/he could handle now gets forgiven?

      Maybe if they take the house and erase the debt, but the problem was: they broke up the debt and sold it repeatedly all over the place! This is why no one knew who actually owned the home. No one had the mortgage; most were lost along the way. Hence the robo-signing scandals, and why this whole pay off-the-judges thing came about.

      It’s a huge problem that has not gone anywhere; the only thing done is this: big finance covers their butts by buying the legislature and judicial branches of as many states that are stupid (which is most) enough to settle.

      (0) 0 Total Votes - 0 up - 0 down
  3. r0y says:

    THIS WHOLE THING WAS SO BEYOND ILLEGAL! Talk about BUYING your politicians and judges.

    Thankfully, most every Californian is so bone-headedly stupid on any matter that is not pop culture, this flew CLEARLY over their heads. Tell them to their face that this injustice was perpetrated and you’ll be lucky if they hang around long enough for that blank, empty stare.

    CA was so fast to sell out it’s residents that it was not funny. Has anyone READ what was in that settlement? We cannot sue the banks for mortgage fraud – ever. Seriously, does anyone realize how much mortgage fraud they committed? And they throw this gnawed-on bone to the state, and those morons (either paid off or intellectual midgets) lapped it up like rabid hounds.

    God help us all.

    (1) 3 Total Votes - 2 up - 1 down
  4. shelworth says:

    Wow, lose your house, and get a month’s rent in return. Seems fair to me. NOT!

    (5) 11 Total Votes - 8 up - 3 down
  5. DennySLO says:

    Really, $1480.00? What does that do for people who became homeless and lost everything because of the illegal acts made by these mortgage lenders?….NOTHING
    So, that’s a whopping 300 Million to be distributed to folks that were wrongfully foreclosed on …….from a 1.5 BILLION dollar settlement? Wow, the lawyers sure cleaned up on this one!
    Personally, this is an insult and marks yet another abuse of money and power by the mortgage companies.

    (25) 27 Total Votes - 26 up - 1 down
  6. scottabeer says:

    wow.. that’s like getting your car Taken back by someone that doesn’t own it and getting as free car wash

    (21) 25 Total Votes - 23 up - 2 down
    • Mike says:

      Yeah but you should see all the money the lawyers got.

      (15) 15 Total Votes - 15 up - 0 down
      • tomsquawk says:

        well, the attys have mortgage payments, too. hopefully with the last census it will be recognized that there is a spare bedroom in that house and some homeless can be moved in to share.

        (8) 14 Total Votes - 11 up - 3 down
    • abigchocoholic says:

      that’s like getting your car Taken back by someone that doesn’t own it and getting as free car wash
      ————–
      that’s funny, damn funny.

      Have you ever seen it any other way in a class action? Class action settlement are always insulting to the class–well at least I’ve never seen one that wasn’t. Usually I get a check from some huge corporation for pennies or a voucher for something I don’t want–and I just throw them away.

      And if you ever look into the attorneys fees–I mean wow. These lawyers make 10s and 10s of millions for getting the class members a penny or two on the dollar.

      (15) 15 Total Votes - 15 up - 0 down
      • Robert1 says:

        I recently received a letter telling me I am a member of a class action that said I get .75 cents per foot of property I used to own near on next to a railroad.
        .75 cents what a joke.The lawyers made millions and the people that suffered the actual loss in pennies.
        America, the land of the free!

        (-1) 1 Total Votes - 0 up - 1 down
    • r0y says:

      And we wonder why the rest of the country not only hates California, but outright fears for their very being as they see us “evolve” as we have been.

      (1) 1 Total Votes - 1 up - 0 down
  7. tomsquawk says:

    this is good for my bank stock!!!!

    (-1) 9 Total Votes - 4 up - 5 down
    • Robert1 says:

      Bank Stock, your funny!!!!!!!!!!!

      (0) 0 Total Votes - 0 up - 0 down
      • tomsquawk says:

        thanks, i intended to be, in a somewhat fatalistic sort of way.

        (0) 0 Total Votes - 0 up - 0 down

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