Mortgage Loan Fraud Assessment based upon Suspicious Activity Report Analysis (Photo credit: Wikipedia)
It has been a long time in the making, and whether you agree with it or disagree, it has happened.
The 5 largest mortgage servicers, 49 states and the federal government have reached a $25B settlement in their lawsuit. Details aren’t very detailed… but:
- $17B in loan mods and principle reduction for distressed borrowers
- $3B for underwater homeowners that are still current on their mortgages
- $1.5B for borrowers that lost homes to foreclosure between 1/1/08 and 12/31/11… there is an assumption that those foreclosures contained some impropriety
- $the other $3.5B isn’t specified, but I would guess that the states are getting that money for “consumer protection” and “Foreclosure prevention” programs
In the case of foreclosed borrowers, checks are supposed to be coming out at the end of the 1st quarter or beginning of the 2nd quarter this year…
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