Five bank loan settlement case, the state gets 160 million

Five bank loan settlement case, the state gets 160 million (Alberta Times) In the loan settlement between 49 states and the five major banks signed on the evening of February 8, Arizona received...

(Alberta Times)

In the loan settlement between 49 states and the five major banks signed on the evening of February 8, Arizona received US$160 million to help homeowners who cannot pay their mortgages refinance and reduce their loans in an attempt to inject life into the sluggish housing market. The five major banks participating in the settlement agreement, including Commercial Bank of America, Chase, Wells Fargo, Citibank and Ally Financial, the federal government, and 49 states except Oklahoma, agreed to assist owners, mainly "drowning houses," to reduce their mortgage debt, avoid debt repayments, or compensate owners whose houses were seized without following due procedures. This measure is one of the government's solutions to the financial tsunami caused by the housing loan crisis that broke out in 2008. However, the government also stated that this does not mean that these lending banks have escaped criminal responsibility for providing false housing loans back then, and the government will continue to pursue them. According to the agreement reached by all parties, the bank will provide at least 17 billion yuan to reduce the loan principal of homeowners who have defaulted on their loans or are likely to be unable to pay their loans; 3 billion yuan will be used to assist homeowners whose mortgages are higher than the house prices; 1.5 billion yuan will be provided to compensate homeowners whose houses were seized from 2008 to 2011, and the rest will be distributed to states. Arizona received $160 million. Arizona Attorney General Hull announced the settlement last Thursday morning. Of that amount, $130 million was provided as compensation for principal reductions, and $8.6 million was provided to borrowers to refinance their loans, and some who lost their homes in a mess where the bank lost documents and failed to follow proper procedures to sign documents, providing an estimated $1,500 to $2,000 in compensation. Although some people believe that this settlement will do little to save millions of injured homeowners, the fines paid by the banks will open up new mortgage financing channels in the market at a time when Congress is unwilling to approve additional spending to boost the housing market. In addition, it also demonstrates the government's determination to require bankers to pay the price for illegal activities.