Feds admit Independent Foreclosure Review was a mistake and cancel the program for an $8.5 Billion Bank Settlement.
The Jackson Free Press just released confirmation that the Independent Foreclosure Review has officially been cancelled and replaced with a large bank settlement. The federal government is shelling out $8.5 billion to 10 banks that were “forced” to carry out the review. Here’s the breakdown:
10 banks have agreed to pay a total of $3.3 billion in cash to the 3.8 million borrowers who had been eligible for the review. That’s an average of around $870 per borrower. But typical of a process that’s been characterized by confusion, delays and secrecy, regulators said the details of how the money will be doled out were not yet available.
The headline number for the settlement is $8.5 billion, but that includes $5.2 billion in “credits” the banks will receive for actions they take to avoid foreclosures, such as providing loan modifications. That’s very similar to the separate $25 billion settlement reached last year between five banks, 49 states and the federal government. That settlement has been criticized for awarding credit to banks for things they were already doing.
A year wasted and the banks are receiving $5.2 billion in credits from the government to be applied towards actions they take to avoid foreclosures. This would include loan modifications, etc.
How does the bank settlement affect you?
The Independent Foreclosure Review was supposed to help Americans avoid foreclosure. In the year it was in effect, foreclosure rates were still at an all time high and hardly anyone was actually “helped” in the process. In essence, the banks caused the foreclosure crisis through poor lending practices and now the government is reimbursing them with credits for fixing it. That’s $5.2 billion in credits to be exact – of YOUR tax money.
Wanted to take part in the Independent Foreclosure Review but didn’t?
If you had planned to take part in the Independent Foreclosure Review but missed the deadline for submitting your application, we can offer you an alternative. By contacting one of our securitization audit specialists today, we will perform a preliminary review of your mortgage documents to determine if there may be evidence of fraud.
The securitization auditors Fraud Stoppers uses are some of the best in the nation and our mortgage audits have a reputation for holding up in a court of law.
For a sample of this securitization audit, send an email to: info@FraudStoppers.org.
The mortgage audits Fraud Stoppers has available are among the best in the industry and are used by attorneys across the nation and have been featured in major news services such as The Boston Globe and San Francisco Chronicle and have been used to obtain:
- Loan modifications with principal reductions
- Foreclosure dismissals
- Overturn foreclosures
- Quitclaim actions
- Settlements and damages
Complete this form and we will contact you to conduct a free, no obligation, loan analysis and consultation to help you determine what legal grounds you have to sue your lender for mortgage and/or foreclosure fraud!