States, Banks Reach Foreclosure-Abuse Settlement

Federal officials say the five largest mortgage lenders have reached a $25 billion settlement with 49 states over foreclosure abuses that took place after the housing bubble burst. They will have three years to fulfill the terms of the landmark deal announced Thursday.

The deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009. Bank of America will pay $1 billion to settle that federal probe.

Oklahoma is the lone holdout and will receive no money.

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  • by Wonder Location: enc on Feb 9, 2012 at 09:59 PM
    Glad to see this article made it. While the Cons. Pac is trying to create a diversion and take away women's health rights, Obama was busy trying to help the middle class home owners. It reminds me of the night bin Laden was killed. While the GOP was criticizing his foreign policy, he was just working without them! Interesting that Romeny, "let them hit rock bottom" wasn't there. That's right, he and the GOP are busy trying to create a theocracy and deny women their right to health care.
  • by doc on Feb 9, 2012 at 06:22 PM
    watch the documentry program inside job and breaking the bank and check out bushs american dream down payment law signed in 2003 and find out who the crooks were in the housing melt down
  • by Beachbum3 on Feb 9, 2012 at 05:40 PM
    what i would truely like to know is when is the government going to start prosecuations of the exectives of these coporate instrest an when will the general public be seing some of the banking exectives doing some perp walks going out of the courthouses an headed off to jail for extended stay say like good old bernie madoff that is what would really help to straighten thing out in this country if you ask me why are the feds not prosecuting for the charges of fraud an so forth againt these indivsual involved in thes kind of crooked dealings thank you
    • reply
      by To bb3 on Feb 9, 2012 at 09:48 PM in reply to Beachbum3
      There has already been arrests. The best part of this agreement is it is NOT over! This did NOT end any investigation, prosecution, or law suits against the bank. This is just the beginning. Many AG's from the states were involved in this agreement and were insistent that it not include and "out" clause.
    • reply
      by never happen on Feb 10, 2012 at 04:56 AM in reply to Beachbum3
      they've all been bought and paid for. Pity. During the depression folks involved in the stock bubble were prosecuted, but not now. In fact bankers kept their bonuses even as their institution lost billions!! How can folks get a bonus for losing money? Sure wish I could buy some politicians!! Raleigh & DC are for sale, plain and simple!!
      • reply
        by Bud on Feb 10, 2012 at 10:17 AM in reply to never happen
        If Wall St bankers learned anything from the great depression it was how to operate on the fringe of existing laws and regulations. Most of these crooks will never face justice because what they did at the time was not technically illegal, or the legal framework was not in place at the time to monitor and regulate what they were doing. Also the sheer complexity of the derivatives trading process is so deep that it will take years just to investigate it. As never happen noted, the owned politicians in Washington kept the regulations so vague as to make them practically unenforceable.
  • by Tom Location: USA on Feb 9, 2012 at 03:10 PM
    This "settlement" is nothing more than window dressing, a waste of taxpayer money, and a gimmick by our federal and state politicians. It allows the lenders coverage at a relatively small price. What is the government doing to increase household income such that people can afford to make the payments that they AGREED to make via contract. Increased regulation and government involvement will ultimately translate to more redistribution of liquidity and wealth in the country - this time by virtue of government influence in the free market. WHAT is the government doing to return American workers to FULL and SUSTAINING employment???
    • reply
      by to Tom on Feb 9, 2012 at 10:00 PM in reply to Tom
      Obviously you missed the part that this is not over. The banks did not get any provision that denies further investigation or law suits!
  • by Dave Location: Wilson on Feb 9, 2012 at 12:58 PM
    So these "victims" were forced, at gun point, to sign these contracts?? Or did they, of their own ignorant free will, get a loan and sign a deal that they could not pay? Banks were FORCED by the Clinton administration to make loans to people who could not pay them back. The banks knew they would not be able to pay them back. So over the years banks bundled these mortgages together and sold them off. They are called Mortgage Backed Securities. People would make a little money and then sell them off again. It happened for years. But now you have banks being forced to pay money to people who actually owe them money?!?! I guess that makes sense in the world of democrats.
    • reply
      by Sorry Liar!! on Feb 9, 2012 at 01:33 PM in reply to Dave
      BOTH administrations participated in this mess!! Remember name your own payment i.e. interest only by Wachovia? came out in 2004. Ari Flescher encouraged banks to "Help Americans achieve the american dream i.e. buy a house. BOTH partys the Fed, Wall Street, Lenders, etc played a part in this. I'm supposed to blame someone that was offred a NIJA loan and NOT the idiot that gave out millions of loans not checking for assets, incomes, jobs etc. NOTHING but flat our greed and no one watching the hen house. SEC has not stopped: madoff, Enron, MF Global, Worldcom, etc. The Fed knew it was a bubble, but did NOTHING. Didn't understand CDS & CDOs and did NOTHING. The rating agencies gave mortgage backed securities a AAA rating and they were toxic! Guses what the folks working in all these agencies are STILL there! America is corrupt from DC to New York and we are STILL on the hook for too big to fail! You can thank BOTH partys for these failures! Special interest run this country and your vote is meaningless basically.The middle has been shafted x 30 yrs!!!! That's under BOTH partys!! The establishment has chosen your ticket for you i.e Romney/Christie. But the die is cast!! Crash will come regardless!!
  • by 99%er on Feb 9, 2012 at 12:15 PM
    I sometimes wonder if this is still America I'm living in, where you can steal billions in fraud and crash the economy, and get rewarded, but if you dare speak out against it, you are beaten­, maced, and arrest­ed.
  • by You are no Mr. America on Feb 9, 2012 at 12:11 PM
    The responses on this article is dumbfoundi­ng. No empathy whatsoever by so many of you. Homes and business went bust thanks to an Administra­tion that gave your jobs away and lined the pockets of their rich friends. Many lost their homes because the economy went bust. They tried to meet with the mortgage company and negotiate their mortgage, but the mortgage company was not interested­. Everyone of you would have a different opinion had it been you, but I guess sitting there behind you computer acting smug is the limit to your compassion and empathy. You have bought the banks/Repu­blican line that these are all just a bunch of whinny irresponsi­ble people who do nothing but complain. May you never have to walk in their shoes. Shame on you.
    • reply
      by To UANMA on Feb 9, 2012 at 09:50 PM in reply to You are no Mr. America
      Oh, they'll care if the GOP wins in Nov. Then, those relatives who are living on unemployment and have no homes will be their problem! The GOP, as I am sure you know, thinks relatives should be taking care of all of them!
  • by e16th on Feb 9, 2012 at 12:04 PM
    I would prefer to see the bankers go to prison. Even that isn't a bad deal, considerin­g that in China, they would most likely be executed, for bringing the entire world to it's financial knees! Letting those thugs get off virtually scott free is wrong and there is no doubt in my mind that the Republican Congress intends to do just that. America is doomed to repeat the same mistakes over and over if we don't get the crooks out of Washington­. Look how bold Boehner and Cantor look, surrounded by the very flags which they disgrace daily.
  • by Mr. America Location: downeast on Feb 9, 2012 at 11:48 AM
    Now lets get something straight this is nothing but buying votes.Obama knows he does not have any votes from people in America that are still out there working,he is doing nothing but trying to buy their vote.He knows that the people of this fine country will speak in a loud voice come November,enough is enough.
    • reply
      by Still Clowns out there on Feb 9, 2012 at 11:57 AM in reply to Mr. America
      So, would you prefer they get relocated to a Moon colony instead?
      • reply
        by Anonymous on Feb 9, 2012 at 12:51 PM in reply to Still Clowns out there
        Or maybe Santorum will let his wife and kid die because they can't afford medication.
    • reply
      by To Mr. America on Feb 9, 2012 at 09:51 PM in reply to Mr. America
      Yeah, just like helping GM was just buying votes. Romeny wanted to let them fail too! He wants to "let real estate hit rock bottom". He fails to understand that real, live people are living in that real estate!
  • by voter Location: nc on Feb 9, 2012 at 11:13 AM
    and these billions will go to the violated homeowners in the form of compensation? OR to obama's political action committee and acorn? OR towards moochele's next vacation?
    • reply
      by Anonymous on Feb 9, 2012 at 11:36 AM in reply to voter
      It amazes me that no matter what this Administration does, there will still be Idiots out there that make stupid comments like yourself, people lives were altered and taken advantage of during this crisis, and you sit back and play the Clown role.
      • reply
        by Anon on Feb 9, 2012 at 01:51 PM in reply to
        You should consult with the other liberal from Kentucky, pictured in the above article.
      • reply
        by To anonymous on Feb 9, 2012 at 09:52 PM in reply to
        Voter knows better, that's the problem. They see Americans leaning the truth and rejecting their hate and they just don't know what to do!
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