Federal Judge Signs Off On $25 Billion Mortgage Settlement With Top 5 Banks

It’s just like reality TV, but not at all — America, here are your top five big greedy banks, and here is the $25 billion mortgage settlement they’re all going home with, now that a federal judge has approved it. That’s their load to carry, after allegations of foreclosure abuses and misconduct in servicing home loans.

Reuters cites court documents that say U.S. District Judge Rosemary Collyer put her John Hancock on the settlements, which had been announced on Wednesday but weren’t available to the public until yesterday.

In the case, 49 states and the federal government brought civil allegations down on the massive heads of Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and Ally Financial. The cute part is that none ever agreed any wrongdoing, but will instead each fork over about $5 billion to the federal and state governments.

Another part of the settlement has them agreeing to slash mortgage debt amounts and restructure troubled loans from the pool of loans they service, in order to meet that $5 billion they owe.

The government says it went after the banks to “remediate harms allegedly resulting from the alleged unlawful conduct.”

The only bank thus far to pipe up on the settlement has been Citigroup, which said it’s already been busy taking calls for its program and has “a few hundred” cases going forward to see if they’ll qualify for aid or a mortgage cut.

“Assisting distressed homeowners remains CitiMortgage’s number one priority,” said Citigroup.

Brown-nosing will only get you so far, Citigroup. Just FYI.

Federal judge approves $25 billion mortgage pact [Reuters]

Comments

Edit Your Comment

  1. Blueskylaw says:

    “has them agreeing to slash mortgage debt amounts and restructure troubled loans from the pool of loans they service, in order to meet that $5 billion they owe.”

    We are taking this seriously and will be helping our troubled mortgage holders 24 hours a day, by slashing their principal to lower their monthly payments, those that can’t pay will be given their houses for free to remunerate them for the stress that we caused and all homeowners that pay their mortgage in full will be given a Technicolor Unicorn as a sign of our appreciation.

  2. r-nice says:

    Better than nothing I suppose.

  3. belsonc says:

    Out of morbid curiosity (and no, I didn’t read TFA or anything, so it might be in there), who was the only other state and why did they not join? Anyone know?

    • Costner says:

      It was Oklahoma… and they settled with a separate very similar agreement around the same time as this was agreed upon.

  4. farker22 says:

    it’s a shame when courts go from enforcing to meeting the criminals half way…

  5. dolemite says:

    Didn’t we already go through this? Banks were supposed to restructure loans, help people out, etc, and no one got any such thing?

  6. BurtReynolds says:

    The real winners: The outside negotiators the banks probably hired to handle this.

    As usual, the losers are the American people. Particularly those who tried to buy responsibly and are now being beaten down by people in their neighborhood who didn’t. Just keep paying that mortgage though…

  7. dush says:

    “Assisting distressed homeowners remains CitiMortgage’s number one priority,” said Citigroup

    No, Citigroup, maximizing value for your shareholders is your number one priority.

  8. Alliance to Restore the Republic of the United States of America says:

    So in short, they paid off the government so consumers can’t sue them. And, that money will go into the pockets of politicians and lobbyists instead of back to those it was stolen from.

    Seems about par with the course for this increasingly illegitimate government.

  9. diagoro says:

    ………and to those that have already lost their homes due to the lousy/illegal bank practices will remain screwed…..

    This does nothing but place a spit shine on the whole affair.

  10. Lyn Torden says:

    They are going to be asking for another bailout to pay this.

  11. homehome says:

    I guess since I work in mortgage when ppl bring up bnaks have lost ppls homes from incompetence, I’m like okay, yeah, that happens, very rarely. Ppl want to blame that on why ppl are losing homes instead of pointing out, ppl signing contracts they couldn’t pay for, being reckless with their money or just signing contracts not knowing what they’re signing then coming back 3 years later made about a stipulation that they refused to read that is causing problems now. It’s like ppl are blaming banks because they weren’t able to keep up their own payments.

    • kent909 says:

      Yes, you must be correct in your assessment. All the bank failures, the 800 bil. bailout, TARP, the disaster that is going on in Greece and other european countries. Bear Sterns, Lehman Bros. and on and on. All that was caused because of the idiot home buyers that signed loans they could not afford. Yes you are correct. That is why the world economy is in such bad shape. Those stupid irresponsible jerks caused this whole mess. Thank you for setting the record straight. I guess Americans should just be ashamed that we are treating the banks so badly. By golly, they have to pay 25B to apologize for the 2T they destroyed.

  12. Plasmafox says:

    And is that $25 billion dollars going to be used to build new housing for the homeless? Paid to wrongly foreclosed homeowners to purchase a new home? Used to fund a program to pay off underwater mortgages?

    Nope, it’s going in Uncle Sam’s pocket. His cut for allowing this monstrosity to occur through deregulation.

  13. pythonspam says:

    “…none ever agreed any wrongdoing…”
    This always makes me sick. If they did nothing wrong, why are they paying money to settle?

  14. FLConsumer says:

    I want to know where the $25BN is going. That’d easily buy health insurance for everyone.