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Sunday, March 11, 2012

Report: Mortgage Settlement might be filed in court Monday

by Calculated Risk on 3/11/2012 09:39:00 PM

Nick Timiraos at the WSJ has some details about the settlement. He also writes that the settlement documents might be filed in court tomorrow.

Here is the online site for the mortgage settlement. Note the "National Mortgage Settlement (coming soon)" in the upper right.

From Timiraos: Mortgage Deal Is Built on Tradeoffs

Settlement documents, which could be filed in court as soon as Monday, will detail the formulas governing how banks gain credit for that aid, as well as new standards banks will have to follow when they deal with borrowers who face or go through foreclosure.
Of the total $25 billion settlement, around $5 billion will be paid as fines. An added $3 billion will be used to help homeowners who owe more than their homes are worth refinance. To pay the remaining $17 billion, banks will receive credits for helping troubled borrowers, of which $10 billion goes toward cutting loan balances for borrowers who are underwater, owing more than their homes are worth.
Banks can satisfy up to 10% of the $17 billion in credits, for example, by waiving the right to pursue deficiency judgments on mortgages that have recourse, such as home-equity loans. ... Banks can satisfy up to 5% of the credits by providing more generous relocation assistance to foreclosed homeowners.