“Settlement of Mortgage Fraud with Bank of America”
These settlement numbers just keep on coming. The numbers sounds really great, but how will B of A contact these folks to let them know, they may qualify for a refinance. I am not sure what kind of oversight, the justice department will have as part of this settlement.
I’m concerned, this may be another case where the numbers look good publicly, but most folks who need the help won’t get it.
The original HARP program that was a signature bailout, was supposed to create a way for 8 million homeowners to refinance, but 10% of that number were actually able to get a refinance done.
By: Kareya Saleh
The agreement follows an historic settlement between federal officials and the nation’s five largest mortgage servicers.
“We announce today the largest ever False Claims Act settlement relating to mortgage fraud,” said Lynch.
Since 2009, the office of Eastern District of New York has been investigating Bank of America’s lending practice. The office inspected whether or not the bank, through Countrywide, which the bank acquired in 2008 had knowingly made loans insured by the Federal Housing Administration (FHA) to unqualified home buyers.
HUD Secretary Shaun Donovan stressed that “it is fundamental that lending institutions that earn the authority to directly endorse FHA-insured mortgages apply our standards.”
The settlement entails an immediate payment of $500 million to provide recovery for harm done to the FHA as a result of the misconduct. Under the terms, Bank of America will solicit all potentially qualified borrowers and provide a loan modification to anyone with an eligible mortgage who accepts the offer.
After three years, if the obligation of $500 million to such relief has not been met, then any remainder will be paid directly to the United States.
“We are committed to protecting the FHA’s ability to provide assistance to qualified low-income and first-time home-buyers,” Lynch said.
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x16
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.