May 19, 2013: banks have paid less than half the $5.7 billion in the 30 different settlements negotiated by various agencies through the Nation.
“Heads I win, tails you lose” is a fraudulent coin toss. Wells Fargo did no better.”
According to the Business Section of the Washington Post, May 19, 2013.
Some of these funds are owed to homeowners who were victims of discrimination and shoddy lending practices; including assigning higher rates to minorities even when they qualified for lower rates or robo-signing (foreclosure documents sign without reading, but testifying that the signer was personally aware of the loan situation).
In 2011, Wells Fargo agreed to compensate up to 10,000 borrowers after the Federal Reserve found the bank was steering them into subprime loans even though they qualified for better mortgages
NO BORROWERS HAVE RECEIVED MONEY YET.
Last year, Bank of America agreed to pay some borrowers between $1,000 and $5,000 for what the Justice Department called lending discrimination. The agency said the bank illegally asked some would-be home buyers who relied on disability income to provide a doctor’s letter verifying the severity of their ailment. There is no list of these victims so no telling how many, if any, will ever receive any monies.
The excuse from the banking industry is that the settlements are too complicated to navigate “quickly” because there are too many agencies, people, lawyers and third parties involved. Meanwhile the homeowner is still trying to save their home or rebuild their lives after their home was taken.
Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.
We have several videos on our web site.
Below are a few that might be of interest:
- “Lender’s Foreclosure Rights in Arizona”
- “Should I keep my home or let it go into foreclosure?”
- “Meet Ms. Drain and Suggestions on How to Hire an Attorney”
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MUSINGS BY DIANE: “Like Sisyphus (see the drawing) the Justice Department (Sisyphus) is not strong enough to roll the rock (the lenders) uphill and accomplish their goal of getting money back to the defrauded homeowners.”