Up to 4.2 million wronged foreclosure victims can anticipate cash payments or other compensation from a “paying agent” who will help determine precise eligibility and contact homeowners by the end of March with an update.
HSBC has joined the settlement announced Jan. 7 between bank regulators and a dozen lenders, boosting the compensation for wronged foreclosure victims to $9.6 billion, regulators said today.
The latest foreclosure-abuse settlement with big banks is partly subsidized by taxpayers in the form of big tax breaks for the lenders.
The Independent Foreclosure Review, an effort launched 20 months ago to correct the wrongs against millions of Americans, was such a failure on so many levels that it had to be scrapped, according to new revelations by The Huffington Post.
The compensation proposal for foreclosed-on homeowners is inadequate in the $8.5 settlement between U.S. regulators and 10 mortgage servicers, leaving the banks off the hook in a process that should be independently monitored, according to consumer advocacy groups.
The 20-month-old Independent Foreclosure Review is now officially a settlement with 10 mortgage servicing companies that will provide more than $8.5 billion in cash payments and other assistance to wronged borrowers.
A U.S. congressional oversight panel has asked bank regulators to delay a reported $10 billion foreclosure-wrongdoing settlement – stemming from the 20-months-old “Independent Foreclosure Review” with 14 mortgage servicers – so that the lawmakers could review the deal, according to a letter made public this weekend.
Last year, bank regulators overseeing a review of foreclosures from 2009 and 2010 outlined potential compensation for wrong homeowners that ran up to $125,000 if a foreclosure could not be rescinded. But that lucrative scenario may be in jeopardy.
A campaign ordered by bank regulators that includes print, radio, television, and online ads is targeting homeowners hardest hit by foreclosures. They have until Dec. 31 to request a free and impartial foreclosure review.