US Seals Mortgage Settlement With Top Banks

Thursday, 09 Feb 2012 10:36 AM

By Newsmax Wires

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The U.S. government announced a deal on Thursday with the biggest U.S. banks to provide $26 billion in relief to distressed homeowners and states, as officials hold lenders responsible for taking illegal shortcuts during foreclosures and other mortgage paperwork.

The deal settles potential state charges about allegations of improper foreclosures based on "robosigning," seizures made without proper paperwork.

The nationwide settlement stems from abuses that occurred after the housing bubble burst. Many companies that process foreclosures failed to verify documents. Some employees signed papers they hadn't read or used fake signatures to speed foreclosures — an action known as robo-signing.

The deal would be the biggest involving a single industry since a 1998 multistate tobacco deal. It would force the five largest mortgage lenders to reduce loans for about 1 million households. The reduced loans would benefit homeowners who are behind on their payments and owe more than their homes are worth.



 

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Palin Challenges WashPost 'Wusses' to Cover Obama Like Nixon

Sunday, 27 Jul 2014 23:03 PM

Sarah Palin issued a challenge to the Washington Post to do the same job investigating President Barack Obama as it did  . . .

Tentative Deal Reached on VA Reform

Sunday, 27 Jul 2014 17:37 PM

The chairmen of the House and Senate Veterans Affairs committees have reached a tentative agreement on a plan to improve . . .

Report: Hamas Turns to North Korea for Arms

Sunday, 27 Jul 2014 17:06 PM

Hamas militants in Palestine are hammering out a new arms deal with communist North Korea to obtain the missiles and com . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved