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View Diary: Thank You President Obama! I was helped by the $26 Billion Settlement. That's why I'm a Democrat! (280 comments)

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  •  Nope...actually, if I say so myself... (4+ / 0-)

    ...I'm quite "unconfused."

    TARP allocated $50 billion to mortgage mod's, back in 2008-2009. That number was scaled back by Congress to roughly $30 billion. Through 2011, $1.4 billion of that was spent.

    Now, with the new settlement, that money will be spent to reimburse the banks...instead of the banks actually having to pay a significant amount of cash out of their own pockets. And, what we're ending up with pales in comparison to what was actually lost on Main Street.

    NY Times’ 3/18/12 Editorial tells us pretty much everything we need to know about the greater TRUTHS here…

    The Banks Win, Again
    New York Times Editorial
    March 18, 2012

    Last week was a big one for the banks. On Monday, the foreclosure settlement between the big banks and federal and state officials was filed in federal court, and it is now awaiting a judge’s all-but-certain approval. On Tuesday, the Federal Reserve announced the much-anticipated results of the latest round of bank stress tests.

    How did the banks do on both? Pretty well, thank you — and better than homeowners and American taxpayers.
    That is not only unfair, given banks’ huge culpability in the mortgage bubble and financial meltdown. It also means that homeowners and the economy still need more relief, and that the banks, without more meaningful punishment, will not be deterred from the next round of misbehavior.

    Under the terms of the settlement, the banks will provide $26 billion worth of relief to borrowers and aid to states for antiforeclosure efforts. In exchange, they will get immunity from government civil lawsuits for a litany of alleged abuses, including wrongful denial of loan modifications and wrongful foreclosures. That $26 billion is paltry compared with the scale of wrongdoing and ensuing damage, including 4 million homeowners who have lost their homes, 3.3 million others who are in or near foreclosure, and more than 11 million borrowers who are underwater by $700 billion.

    The settlement could also end up doing more to clean up the banks’ books than to help homeowners…

    Breaking Down the Mortgage Settlement: How Far Does $26 Billion Go?
    by Cora Currier
    ProPublica, March 19, 2012, 11:52 a.m.

    The big bank settlement over mortgage servicing abuses was finalized last week, detailing the agreement’s actual terms.

    Bank of America, Citigroup, Ally Financial (formerly GMAC) and JPMorgan Chase are on the hook for billions, which will be divvied up among penalties paid to the federal and state governments, direct payments to homeowners wrongfully foreclosed upon, and credits to the banks for providing “consumer relief.” (Read the government’s complaint and consent judgment.)

    Here’s a breakdown of key settlement numbers, showing where the money is going and how much help it will really provide for homeowners.

    $1.4 billion: total direct payments from the settlement to homeowners who were wrongfully foreclosed upon between 2008 and 2011.

    750,000: foreclosed homeowners expected to qualify.

    $2,000: estimated average payout.

    3.8 million: total foreclosures between 2008 and 2011.

    25 percent: expected increase in foreclosures in 2012. That would mean about 1 million foreclosures, up from 804,000 last year, partly as a result of banks clearing a backlog held up by the settlement proceedings.

    $3 billion: total for which banks can be credited for offering refinancing to underwater homeowners who owe more than their homes are worth. (There are questions about exactly how the credits will work and why the banks are being given incentives rather than punishment.)…

    More from ProPublica…

    By the Numbers: A Revealing Look at the Mortgage Mod Meltdown.”

    The Great American Foreclosure Story: The Struggle for Justice and a Place to Call Home.”

    The State of the Government's Loan Modification Program.”

    Foreclosure Crisis: The Story So Far.”

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Sun Apr 22, 2012 at 12:26:27 PM PDT

    [ Parent ]

    •  this is a good news (6+ / 0-)

      Situation for someone who benefited from the settlement. This person is just telling about his story.

      I don't it is fair for you to try to shut him down.  We have a right to post our good news stories about a time in our life.

      Besides, eric schienderman can still proecute the big banks for the highest crimes. The highest crimes fall under criminal category, a key category that was not exempt for the banks.

      Civil crimes were exempt not criminal.   There is a subtle but significant difference there.

      A reuters article confirmed that eric is getting office space in dc. It is looking more and more likely we will get prosecutions for high crimes against the banks soon.

    •  Despite your pretzel twists (2+ / 0-)
      Recommended by:
      Diogenes2008, askew

      and doubling down on your dickish dismissal of this diary as "propaganda", when it is factual and true that many are benefitting by this re-fi program. You can post all the spam you want, it won't change the truth of the fact that you were wrong. And it won't change the fact that if someone had called one of your diaries "propaganda", your supporters would have HR'd it to oblivion.

      You can into this diary being a dick and you doubled down on your sickishness. Show the respect for other diarists that you demand for yourself.

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