Banks settle Robo Signing Charges for $25 Billion

Landmark settlement announced against banks for robo signing foreclosures: $12 Billion for California mortgage principal reductions

After months of negotiations, 5 major banks settled charges of fraudulently signing foreclosure documents by agreeing to pay $25 Billion dollars out to homeowners and people who lost their homes to foreclosure over the next 3 years.     Further lawsuits and actions from investors and the federal government still loom against many lenders.

Under this agreement, $12 Billion is guaranteed to go to California.

Nationwide, $17 Billion is allocated towards homeowners who are currently behind on their payments in the form of loan modifications and principal reductions.

Another $3 Billion is allocated to homeowners who are underwater and have been unable to refinance their homes,

Sadly, only $1.5 Billion has been allocated to help the people who lost their homes to foreclosure between 2008 and 2011.     $2,000 is expected to be paid out to some 750,000 borrowers.    In my opinion this is a pittance and poorly addresses the point of the charges made against the banks.   The banks admitted there were situations where uninformed people signed hundreds of thousands of false documents to accomplish foreclosure when the original loan documents had been lost.

Click here to learn how to begin getting your benefits.    Or, contact MC.

Read the original article at Reuters:

Although there are financial incentives for them to accomplish more during the 1st year, the actual terms of the settlement allow the banks 3 years to pay out the money.


It’s a great time to refinance! 30 Year Mortgage Rates below 4%

For the 6th consecutive week, average rates for the 30 year mortgage were at all time historical lows of below 4%, according to an article published on RIS Media based on Freddie Mac Research

So it’s worth repeating a segment of a blog I published last year, under the headline of

New laws affecting CA homeowners…

…because enough time has passed so the regulators and the bankers have gotten their game plan together to help underwater homeowners refinance their homes.

I’ve discovered many people aren’t aware that, if their home mortgage was a Fannie Mae or Freddie Mac, they may be able to refinance into today’s ultra low interest rates, even if their home is underwater!

HARP – the federal government’s “Home Affordable Refinance Plan” – was criticized for not helping enough people, so they’ve improved it.     There are some conditions—for example, you have to be current on your mortgage payments, and the mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.       Check the links below to see if your loan is eligible:

or call 800-7FANNIE (8 am to 8 pm ET)

or call 800-FREDDIE (8 am to 8 pm ET)

Or, you can always contact me for help.

Are you aware that the state of Californiahas funds for homeowners at risk of losing their homes?    The federal government gave the state $2 Billion for the “Keep your Home California” program to help people make their payments, but only $150 million has been granted.   Here’s an article about it, and the phone number: 888-954-KEEP (5337).

Finally, from the Ca Association of Realtors, come these “Fast Facts:” – Check out the Pending Home Sales!

Fast Facts
Calif. median home price: December 2011: $285,920 (Source: C.A.R.)
Calif. highest median home price by region/county December  2011: Marin: $693,880 (Source: C.A.R.)
Calif. lowest median home price by region/county December 2011: Madera: $106,000 (Source: C.A.R.)

Calif. Pending Home Sales IndexNovember 2011: 109.8, an increase of 11 percent compared with the prior year.

Calif. Traditional Housing Affordability Index: Third quarter 2011: 52 percent (Source: C.A.R.)

Mortgage rates: Week ending 1/12/2012 30-yr. fixed: 3.89% fees/points: 0.7% 15-yr. fixed: 3.16 fees/points: 0.8% 1-yr. adjustable: 2.76% Fees/points: 0.6% (Source: Freddie Mac)

Building A Bridge to Your Future

M.C. Dwyer, MBA, REALTOR, Century 21 Showcase REALTORS

(831) 419-9759 copyright 2012