Consumers can suffer great harm when lenders and mortgage service companies engage in wrongful conduct when it comes to foreclosures. No consumer should have to be subjected to such wrongful conduct.
Recently, a settlement was reached in a matter involving allegations of foreclosure-related wrongdoing. The matter involved five large banks. The banks were accused of having committed wrongful conduct regarding foreclosures.
The above-mentioned settlement is between the five banks and the attorneys general of 49 states (every state except Oklahoma) and releases the banks from certain civil liability regarding the above-mentioned allegations. The settlement reportedly does not release the banks from any criminal liability regarding these allegations.
Reportedly, as part of this settlement, the banks have agreed to take certain steps such as:
- Making a monetary payment which will be used to give small cash payments to certain individuals whose homes were involved in foreclosures that were impacted by the alleged wrongful conduct.
- Offering mortgage relief (such as loan modifications or reductions in loan amounts) to certain borrowers.
According to the Palm Beach Post article which reported this story, under the settlement, $8.4 billion in cash and mortgage relief will be directed towards Florida. This reportedly is the second largest share of the settlement that any state received.
This recently reached settlement gives rise to some questions. What impacts will this settlement have on consumers in Florida and the rest of the U.S.? How much help will this settlement ultimately provide to homeowners in Florida? Was this settlement a good thing for homeowners? It will be interesting to see how these questions are ultimately answered.
Source: The Palm Beach Post, “$8.4 billion from foreclosure settlement to help Florida homeowners,” Kimberly Miller, Feb. 9, 2012