{"id":7068,"date":"2012-02-10T00:01:37","date_gmt":"2012-02-10T08:01:37","guid":{"rendered":"http:\/\/www.politicsplus.org\/blog\/?p=7068"},"modified":"2012-02-10T01:22:35","modified_gmt":"2012-02-10T09:22:35","slug":"we-spoke-out-obama-listened","status":"publish","type":"post","link":"https:\/\/www.politicsplus.org\/blog\/2012\/02\/10\/we-spoke-out-obama-listened\/","title":{"rendered":"We Spoke Out; Obama listened!"},"content":{"rendered":"

For weeks I have listened to complaints about Obama\u2019s coming deal with the big banks that was sure to leave main street Americans out in the cold while giving criminal Banksters\u00a0 a get out of jail free card<\/em>.\u00a0 Today that deal arrived.\u00a0 It is a modest down payment on what the US needs to restore the housing market on main street.\u00a0 Given the Republican Party\u2019s unwillingness to do anything at the federal level to help suffering Americans, it was the best Obama could do, with the help of State Attorneys General from both parties from every state but Oklahoma, whose AG sided with the Banksters.\u00a0 The deal neither leaves main street Americans out in the cold, nor does it give criminal Banksters a get out of jail free card<\/em>.<\/span><\/p>\n

\"10Mortgage\"State and federal officials on Thursday announced a settlement of more than $25 billion with five of the nation\u2019s banks over their flawed and fraudulent foreclosure practices<\/a>. It is the largest government-industry settlement in more than a decade.<\/p>\n

The deal aims to help troubled borrowers by reducing the amount they owe on their mortgages, lowering their interest rates and paying restitution to homeowners who suffered mortgage-related abuses. It will force lenders to revamp how they interact with troubled homeowners and bar them from trying to foreclose on borrowers while simultaneously negotiating mortgage modifications.<\/p>\n

In addition, firms will have to make sure borrowers have a single point of contact with a lender, rather than being shuttled to different employees with each interaction…<\/p><\/blockquote>\n

Inserted from <Washington Post<\/a>><\/p>\n

Here are more details about the deal.<\/span><\/p>\n

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KEY PROVISIONS OF THE SETTLEMENT<\/strong><\/span><\/p>\n

Immediate aid to homeowners needing loan modifications now<\/span><\/span><\/strong><\/span>, including first and second lien principal reduction.\u00a0 The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide.<\/span><\/p>\n

State attorneys general anticipate the settlement\u2019s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.<\/span><\/p>\n

Immediate aid to borrowers who are current, but whose mortgages currently exceed their home\u2019s value<\/span><\/span><\/strong><\/span>.\u00a0 Borrowers will be able to refinance at today\u2019s historically low interest rates.\u00a0 Servicers will have to provide up to $3 billion in refinancing relief nationwide. <\/span><\/p>\n

Immediate payments to borrowers who lost their homes to foreclosure<\/span><\/span><\/strong><\/span> with no requirement to prove financial harm and without<\/span><\/span> having to release private claims against the servicers or the right to participate in the OCC review process.\u00a0 $1.5 billion will be distributed nationwide to some 750,000 borrowers.<\/span><\/p>\n

Immediate payments to signing states<\/span><\/span><\/strong><\/span> to help fund consumer protection and state foreclosure protection efforts.<\/span><\/p>\n

First ever nationwide reforms to servicing standards<\/span><\/span><\/strong><\/span>; something that no other federal or state agency has been able to achieve. These servicing standards require single point of contact, adequate staffing levels and training, better communication with borrowers, and appropriate standards for executing documents in foreclosure cases, ending improper fees, and ending dual-track foreclosures for many loans.<\/span><\/p>\n

State AG oversight of national banks for the first time<\/span><\/span><\/strong><\/span>.\u00a0 Something no court could award.\u00a0 <\/span><\/p>\n