49 States Attorneys, the office of Housing and Urban Development (HUD) and the Justice Department announced last Monday that a $25 billion mortgage servicing settlement had been filed in federal court. The settlement was reached on February 9, 2012 between state, federal and Bank officials from the five largest servicers. The agreement detailed actions the Bank must take to deal with issues regarding wrongful foreclosures, including providing $20 billion in consumer aid and imposing new standards within the foreclosure industry.
The new standards and policies for foreclosure are by themselves welcomed changes. Services will now no longer be able to foreclose on a borrower when he or she is being considered for a loan modification, and servicers are required to have a single point of contact for borrowers. There is also a new third-party monitoring system that will oversee implementation of service standards and impose penalties for violations. Hopefully Banks will use these safeguards to proactively handle problems on the horizon rather than fall back into the too-big-to fail routine that propelled the real estate bubble to burst.
If you have been subject to lost paperwork, robo-signing, and unfair fees, one of the best places to start is by consulting a Jacksonville Foreclosure Defense Attorney.