Breaking Down the Mortgage Settlement: How Far Does $26 Billion Go?Quicklink submitted by Amanda Lang Permalink
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|The big bank settlement over mortgage servicing abuses was finalized last week, detailing the agreement's actual terms. Bank of America, Citigroup, Ally Financial (formerly GMAC) and JPMorgan Chase are on the hook for billions, which will be divvied up among penalties paid to the federal and state governments, direct payments to homeowners wrongfully foreclosed upon, and credits to the banks for providing 'consumer relief.' (Read the government's complaint and the banks' consent judgment.) Here's a breakdown of key settlement numbers, showing where the money is going and how much help it will really provide for homeowners. $1.4 billion: total direct payments from the settlement to homeowners who were wrongfully foreclosed upon between 2008 and 2011. [Except in those states where governors are stealing the homeowners' money to cover deficits from GOP/Tea Bagger policies.|
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