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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFact Sheet: Mortgage Servicing Settlement
Fact Sheet: Mortgage Servicing Settlement
Financial Relief for Homeowners: The servicers will be required to dedicate $20 billion to various forms of relief to borrowers.
Servicers will receive only partial credit for every dollar spent on some of the required activities, so the settlement will provide direct benefits to borrowers in excess of $20 billion.
Payments to State and Federal Governments: In addition to the $20 billion of financial relief for homeowners, the servicers will make $5 billion in cash payments to the states and federal government. Of the $5 billion:
- more -
http://portal.hud.gov/hudportal/HUD?src=/mortgageservicingsettlement/fact-sheet
Financial Relief for Homeowners: The servicers will be required to dedicate $20 billion to various forms of relief to borrowers.
- Principal reduction. At least $10 billion will be dedicated to reducing principal for borrowers who, as of the date of the settlement, owe more on their mortgages than their homes are worth and are either delinquent or at imminent risk of default.
- Refinancing. At least $3 billion will be dedicated to a refinancing program for borrowers who are current on their mortgages but who owe more on their mortgages than their homes are worth. All borrowers who meet basic eligibility criteria will be eligible for the refinancing, which will reduce interest rates for borrowers who are currently paying much higher rates or whose adjustable rate mortgages are due to soon rise to much higher rates.
- Other forms of relief. Servicers will be required to dedicate up to $7 billion to other forms of relief, including forbearance of principal for unemployed borrowers, anti-blight programs, short sales and transitional assistance, benefits for service members who are forced to sell their homes at a loss as a result of a Permanent Change in Station, and other programs.
Servicers will receive only partial credit for every dollar spent on some of the required activities, so the settlement will provide direct benefits to borrowers in excess of $20 billion.
Payments to State and Federal Governments: In addition to the $20 billion of financial relief for homeowners, the servicers will make $5 billion in cash payments to the states and federal government. Of the $5 billion:
- more -
http://portal.hud.gov/hudportal/HUD?src=/mortgageservicingsettlement/fact-sheet
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Fact Sheet: Mortgage Servicing Settlement (Original Post)
ProSense
Feb 2012
OP
girl gone mad
(20,634 posts)1. A terrible deal for the people.
Great time to be a bankster, though. Same as it ever was.
russspeakeasy
(6,539 posts)2. I give you $1,000 to keep you solvent (tarp), you give me $1.
We're even, right ?
MrCoffee
(24,159 posts)3. What's one more massive scam among friends, right?
MFrohike
(1,980 posts)4. Sweet
$10 billion in principal reduction for first mortgages, while nothing for junior liens. Now who could possibly own those junior liens that remain at full value on the books?
marmar
(77,127 posts)5. There's not enough lipstick in Sephora for this pig of a settlement.
nt
msongs
(67,502 posts)6. there u go again criticising the obama PR department lol nt