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The States vs. The Banks

Real Estate Agent with Real Estate Teams LLC

Your Distressed Property and Short Sale Expert in Maryland

 Under the combined pressure of 50 State Attorneys General, five large banks(mortgage servicers) have submitted proposals to reform their present practices. They are joined by the Justice Department and the new Consumer Financial Protection Board.

The banks are Bank of America, Citibank, JP Morgan Chase, Ally Financial(formerly GMAC), and Wells Fargo. They sumitted a proposal before the first scheduled meeting with the Attorneys General.

Changes the banks are agreeing to are: ending the "dual-track" process where a foreclousre can still occur even when an agreement to not foreclosure has been reached; giving borrowers a single point of contact when negotiating for a modification; verifying that affadavits in foreclosure actions are accurate and complete.

The banks do not offer to reduce principle amounts for certain types of borrowers, allow borrowers to submit and track documents electronically in real time, or allow borrowers in loan mod trials to automatically convert to permanent modification if they have made three payemnts on time. Other proposals were to fine the banks billions of dollars and require billions more for loan principle reductions.

Any negotions are not likely to have everyone ending on the same page, and some agencies, including the Office of the Comptroller, are persuing separate settlements with banks.

Do you think banks should be fined billions of dollars for their past shoddy practices?
Should banks be forced to modify their present practices in foreclosure actions?
Should banks be made to modify many poorly made home loans?

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Larry Costa
Century 21 Classic Gold, Carver MA - Carver, MA
Realtor, MA Real Estate

Would be inetrested in reading more about this. Was there an article or link you can post?

Mar 31, 2011 06:51 AM
Dennis Helmstetter
Real Estate Teams LLC - Frederick, MD

Couple of articles but Washington Post is thorough.

Yesterday's paper = www.washingtonpost.com

Mar 31, 2011 07:25 AM