TALLAHASSEE, FL – February 10, 2012 – (RealEstateRama) — Attorney General Pam Bondi today formally entered a landmark $25 billion joint federal-state agreement with the nation’s five largest mortgage servicers over foreclosure abuses and unacceptable nationwide mortgage servicing practices. The proposed agreement provides an estimated $8.4 billion in relief to Florida homeowners and addresses future mortgage loan servicing practices. The settlement generally releases civil claims related to robo-signing, other foreclosure-related abuses, and loan origination misconduct, but it provides no release of criminal claims or of claims related to mortgage securitization.
“This settlement will provide substantial relief to struggling Florida homeowners, and ensures that our state gets its fair share of the relief being provided nationally,” stated Attorney General Pam Bondi. “This agreement holds banks accountable and puts in place new protections for homeowners in the form of strict mortgage servicing standards.”
Florida’s share of the total monetary benefits under the settlement is approximately $8.4 billion.
· Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction, and other direct relief.
· Approximately $170 million will be available for cash payments to Florida borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and suffered servicing abuse.
· The value of refinanced loans to Florida’s underwater borrowers would be an estimated $ 309 million.
· The state will receive a direct payment of $ 350 million.
In addition to the terms of the national settlement agreement, Attorney General Bondi separately negotiated an agreement with the nation’s three largest mortgage servicers to ensure that a guaranteed portion of the overall settlement funds goes to Florida borrowers.
The unprecedented joint state-federal settlement is the result of a civil law enforcement investigation and initiative that includes state attorneys general and state banking regulators across the country, and nearly a dozen federal agencies. The settlement holds banks accountable for past mortgage servicing and foreclosure fraud and abuses and provides relief to homeowners. With the backing of a federal court order and the oversight of an independent monitor, the settlement reforms the mortgage servicing industry and protects against future fraud and abuse.
Under the agreement, the five servicers have agreed to $25 billion in monetary relief under a joint state-national settlement structure.
· Servicers commit a minimum of $17 billion directly to borrowers through a series of national homeowner relief effort options, including principal reduction. Given how the settlement is structured, servicers will actually provide up to an estimated $32 billion in direct homeowner relief.
· Servicers commit $3 billion to a mortgage refinancing program for borrowers who are current, but owe more than their home is currently worth.
· Servicers pay $5 billion to the states and federal government $4.25 billion to the states and $750 million to the federal government. The state payments include funding for payments to borrowers for mortgage servicing abuse.
· Homeowners receive comprehensive new protections from new mortgage loan servicing and foreclosure standards.
· An independent monitor will ensure mortgage servicer compliance.
· Government can pursue civil claims outside of the agreement, any criminal case; borrowers and investors can pursue individual, institutional or class action cases.
The settlement does not grant any immunity from criminal offenses and will not affect criminal prosecutions. The agreement does not prevent homeowners or investors from pursuing individual, institutional or class action civil cases against the five servicers. The pact also enables state attorneys general and federal agencies to investigate and pursue other aspects of the mortgage crisis, including securities cases.
The final agreement, through a consent judgment, will be filed in U.S. District Court in Washington, D.C., and will have the authority of a court order.
Because of the complexity of the mortgage market and this agreement, which will span a three year period, in some cases participating mortgage servicers will contact borrowers directly regarding loan modification options. However, borrowers should contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement or other available programs.
More information will be made available as the settlement programs are implemented.
For more information on the proposed agreement:
Phone: (850) 245-0150
- Attorney General Reaches Agreement with Wells Fargo Providing More Than $388 Million in Mortgage Relief to Florida Homeowners
TALLAHASSEE, FL - October 6, 2010 - (RealEstateRama) -- Attorney General Bill McCollum today announced a multi state agreement with Wells Fargo Bank over allegations of deceptive marketing of payment option adjustable rate mortgage loans (POA’s) by Wachovia Corporation and Golden West Corporation, before Wells Fargo acquired the companies. From April 1, 2010 through the term of the agreement, more...
- Federal Trade Commission Commends McCollum’s Proactive Efforts Against Foreclosure Rescue Fraud
TALLAHASSEE, FL - November 25, 2009 - (RealEstateRama) -- The Federal Trade Commission (FTC) today commended Florida Attorney General Bill McCollum for his proactive efforts to combat mortgage foreclosure rescue and loan modification scams in Florida. Yesterday, the FTC unveiled “Operation Stolen Hope,” a national sweep targeting these types of scams, and announced the filing of just over 100 state...
- McCollum: Orange County Legal Aid to Get $84,000 Through Mortgage Foreclosure Defense Fund
TALLAHASSEE, FL - August 31, 2009 - (RealEstateRama) -- Attorney General Bill McCollum and The Florida Bar Foundation today awarded $84,000 to the Legal Aid Society of the Orange County Bar Association, Inc. to be used for a new foreclosure defense assistance program. The program is funded by money obtained by the Attorney General through a settlement with Countrywide Financial....
- McCollum Obtains Civil Rights Settlement for Central Florida Couple
TALLAHASSEE, FL - September 10, 2009 - (RealEstateRama) -- Attorney General Bill McCollum today announced that his office has obtained a settlement for a Central Florida couple resolving allegations of civil rights violations related to their condominium. Under the settlement, Brevard County developer Tricon Development Corporation paid $15,000 in civil damages to Josephine and Dominic DeRusso, which included the cost...
- CFO Sink Announces Joint Investigation Arrests in Mortgage Fraud Crackdown
TALLAHASSEE, FL - July 16, 2010 - (RealEstateRama) -- Florida CFO Alex Sink today announced the arrests of six criminals involved in a mortgage fraud scam that resulted in more than $2 million in fraudulent mortgages. The arrests are the result of a joint investigation by the Department of Financial Services’ Division of Insurance Fraud (DIF), the U.S. Immigration and...
- Attorney General Pam Bondi Announces New Procedures Banks Must Follow to Help Distressed Homeowners Seeking Relief Under National Mortgage Settlement
- INFORMATION SECURITY COMPANY TO DOUBLE IN SIZE
- CBRE CLOSES SALE OF TWO ISLAMORADA RESORT/MARINA ASSETS
- CBRE ARRANGES SALE OF NEW TROPHY SINGLE-TENANT NET LEASE BANK OF AMERICA IN FORT LAUDERDALE, FL
- Public Works urges citizens to protect their property from flooding hazards
- Community-development conference kicks off in Orlando; 2,100 professionals, $1.84 million in economic impact expected
- Martinez Announces First-Time Homebuyer Forum in Miami
- Attorney General Hosts Second Miami Community Forum on Housing Issues
- Martinez Hosts Homeownership Preservation Forum for Residents In Manatee & Sarasota Counties
- Attorney General, Florida Interagency Mortgage Task Force Host Broward Community Forum on Housing Issues
- Attorney General McCollum Hosts South Florida Community Forum on Housing Issue
- Florida Interagency Mortgage Task Force Hosts Community Forum on Housing Issues
- Attorney General Hosts Central Florida Community Forum on Housing Issues
- The Conference Board: Consumer Confidence Index down
- FLORIDA PARTNERSHIP RECEIVES $1,000,000 AFFORDABLE HOUSING PRESERVATION GRANT AWARD FROM THE MACARTHUR FOUNDATION
- Sinking dollar gives foreigners ‘upper hand’