David Saks: BANK OF AMERICA SETTLEMENT WILL PROVIDE BILLIONS IN CONSUMER RELIEF

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

BANK OF AMERICA SETTLEMENT WILL PROVIDE BILLIONS IN CONSUMER RELIEF

HUD NEWS

 

U.S. Department of Housing and Urban Development – Julián Castro, Secretary

 

Office of Public Affairs, Washington, DC 20410

 

 

 

HUD No. 14-101                                                                               

FOR RELEASE                                                                              

Thursday                                                                                  

August 21, 2014

 

http://www.hud.gov/news/index.cfm

 

 

 

OBAMA ADMINISTRATION SETTLEMENT WITH BANK OF AMERICA

WILL STRENGTHEN FHA FUND,

PROVIDE BILLIONS IN CONSUMER RELIEF

 

WASHINGTON – The Obama Administration today announced an almost

$17 billion global settlement with Bank of America.

$1 billion of the total settlement amount resolves claims arising from allegations of fraud involving certain Federal Housing Administration (FHA)-insured single-family mortgage loans and a failure to perform under its servicing contract with the Government National Mortgage Association (Ginnie Mae).

Under the terms of the settlement, Bank of America will pay $800 million to resolve the claims relating to FHA and $200 million to Ginnie Mae.

The remaining nearly $16 billion of the total settlement amount resolves fraud claims involving the pooling of residential mortgage backed securities, collateralized debt obligations, and other claims by the United States, along with the States of California, Delaware, Illinois, Maryland, New York, and the Commonwealth of Kentucky, and includes $7 billion in consumer relief with a focus on borrowers that were in the hardest-hit areas during the housing crisis. 

"Today’s settlement with Bank of America is another important step in the Obama Administration’s efforts to provide relief to American homeowners who were hurt during the housing crisis,” said U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro.

“This global settlement will strengthen the FHA fund and Ginnie Mae, and it will provide $7 billion in consumer relief with a focus on helping borrowers in areas that were the hardest hit during the crisis.  HUD will continue working with the Department of Justice, state attorneys general, and other partners to take appropriate action to hold financial institutions accountable for their misconduct and provide consumers with the relief they need to stay in their homes. HUD remains committed to solidifying the housing recovery and creating more opportunities for Americans to succeed.”

This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group.

Working with the Department of Justice, HUD’s Office of General Counsel, Office of Housing, and Office of the Inspector General worked extensively on the fraud investigation involving FHA-insured single-family mortgage loans that were underwritten by Bank of America during the period from May 1, 2009, to April 1, 2011. HUD also provided assistance with respect to a breach of contract claim involving Bank of America’s role as one of two master subservicers for Ginnie Mae’s portfolio of defaulted single-family mortgages.

The $7 billion in consumer relief will focus on areas that were hardest hit during the housing crisis. Consumer relief will take various forms including loan modification for distressed borrowers, including FHA-insured borrowers, and new loans to credit worthy borrowers struggling to get a loan in hardest hit areas, borrowers who lost homes to foreclosure or short sales, and moderate income first-time homebuyers. Bank of America will also make donations to community development funds, legal aid organizations, and housing counseling agencies to assist individuals with foreclosure prevention and to support community reinvestment and neighborhood stabilization and provide financing for affordable rental housing with a focus on family housing in high-cost areas.  An independent monitor will be appointed to ensure compliance with the terms of the agreement.

 source:
http://www.hud.gov/news/index.cfm

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David Saks



Time&Temp Memphis

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Comment balloon 4 commentsDavid Saks • August 21 2014 08:52AM

Comments

David, Good to see this report on the news last night.  Thanks for sharing. g

 

Posted by Gloria Todor, & Doug Durren (484) 431-3686 in SE PA (Weichert Realtors) about 6 years ago

Thank you for stopping by, Gloria and Doug.

Hope you're having a terrific day.

Posted by David Saks ((retired)) about 6 years ago

David, I just hope that the money ends up in the correct hands because if the government is managing this money I will have my doubts.

Posted by Sam Miller, Knox County Ohio Real Estate Specialist (RE/MAX Stars Realty) almost 6 years ago

Many reflect the same sentiments, Sam, because of the misappropriation of resources and finances by trusted officials over the last few years.

Posted by David Saks ((retired)) almost 6 years ago

This blog does not allow anonymous comments