Current Trends in Civil Legal Aid

US banks to send checks to 4.2M who lost homes- Judicial Modification Now

US banks to send checks to 4.2M who lost homes US banks this week begin sending checks to 4.2M who lost homes to foreclosure Associated Press – WASHINGTON (AP) -- The nation's largest banks will begin sending payments this week to millions of Americans who may have been wrongfully foreclosed on during the housing crisis. A total of $3.6 billion in cash will be distributed to 4.2 million borrowers, the Federal Reserve and the U.S. Comptroller of the Currency said Tuesday. Payments will range from $300 to $125,000. About 90 percent of borrowers whose mortgages were serviced by 11 of the banks will receive payments by the end of April, the agencies said. The last group of payments is expected in mid-July. The banks, which include Bank of America, JPMorgan Chase, Wells Fargo and Citigroup, reached a settlement with the federal agencies in January. They agreed to pay a total $9.3 billion in cash and in reductions of mortgage balances. The 13 banks settled the regulators' complaints that they wrongfully foreclosed on borrowers with abuses such as "robo-signing," or automatically signing off on foreclosures without properly reviewing documents. The settlement covers foreclosures in 2009 and 2010. It ended an independent review of loan files that the two agencies ordered in 2011. Banks and consumer advocates had complained that the loan-by-loan reviews were time-consuming and costly and didn't reach many affected borrowers. Some questioned the independence of the consultants who performed the reviews, who often ruled against borrowers. Consumer advocates have criticized the deal, saying the regulators settled for too low a price by letting banks avoid full responsibility for wrongful foreclosures. The other banks in the settlement are HSBC, MetLife Bank, PNC Financial Services, Sovereign, SunTrust, U.S. Bank, Aurora, Morgan Stanley and Goldman Sachs. __ Borrowers can call Rust Consulting, the paying agent, at 1-888-952-9105 to update their contact information or verify that they are covered by the settlement.

Update from OCC and Federal Reserve

Payments to 4.2 million eligible borrowers under the Independent Foreclosure Review (IFR) Payment Agreement began on April 12.  The checks range from $300 to $125,000, and they will go out in waves according to the following schedule:

• April 12 – approximately 1,391,000
• April 19 – approximately 1,391,000
• April 26 – approximately 927,000
• May 3, 10 – approximately 232,000

 The payment categories and amounts are available on the OCC and Federal Reserve Web sites at: www.occ.gov and www.federalreserve.gov

 Borrowers eligible for these payments would have been in some stage of foreclosure in 2009 or 2010 and their loan would have been serviced by one of the firms listed on the Websites listed below. If you encounter borrowers who you believe are eligible for payment under the IFR Payment Agreement, but who have not received the postcard sent in March 2013, please instruct them to call the payment agent - Rust Consulting at 1-888-952-9105 Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET to verify eligibility and discuss the change of address process.  Eligible borrowers who have not received their checks after the last group of checks is mailed in May are also encouraged to call this number about the status of their payments.

 Information Toolkit:

 In addition, the OCC and the Federal Reserve Board have released several pieces of information pertaining to the Independent Foreclosure Review Payment Agreement that will be helpful as you field questions from borrowers. The “IFR Payment Toolkit” can be accessed here:

• On the OCC’s website in the “Related Links” section at: http://www.occ.gov/independentforeclosurereview
• On the Federal Reserve Board’s website in the “Related Resources” section at: http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review-payment-agreement.htm

 If borrowers contact you for guidance, the IFR Payment Toolkit contains the following resources you can use to assist them:

• Press Release – Payment Agreement Details (4/9/13)
• Table – Payment Agreement Details
• Press Release - IFR Payment Agreement Announcement (1/17/13)
• Press Release - Amended Consent Orders (2/28/13)
• Frequently Asked Questions
• IFR Payment Agreement Public Service Announcement
• Independent Foreclosure Review: Important Changes audio conference (includes presentation and question and answer session)

 Please share these resources with constituents, stakeholders, and other interested parties.  In addition, a link to the Public Service Announcement mentioned above is attached for your convenience. Please see:  http://occ.gov/news-issuances/psa/payments-and-foreclosure-assistance-to-begins-april-2013.html  The announcement can be used for posting on websites, to list serves, and for local media. 

 Additional information and answers to frequently asked questions for eligible borrowers are also available at: https://independentforeclosurereview.com/settled.aspx.  For borrowers serviced by mortgage servicing companies still continuing with the independent foreclosure review process, information and answers to frequently asked questions is available at: https://independentforeclosurereview.com/nonsettled.aspx.  Once again, the OCC and Federal Reserve Board thank you for your continued support of the IFR Payment Agreement.

 

Banks are a key link for payday loan firms

By JESSICA SILVER-GREENBERG The New York Times

Published: Sunday, February 24, 2013 at 1:00 a.m.

The Federal Deposit Insurance Corp. and the Consumer Financial Protection Bureau are examining banks' (which include giants like JPMorgan Chase, Bank of America and Wells Fargo) roles in the online loans, according to several people with direct knowledge of the matter. Benjamin M. Lawsky, who heads New York state's Department of Financial Services, is investigating how banks enable the online lenders to skirt New York law and make loans to residents of the state, where interest rates are capped at 25 percent.

For the banks, it can be a lucrative partnership. At first blush, processing automatic withdrawals hardly seems like a source of profit. But many customers are already on shaky financial footing.

While the loans are simple to obtain -- some online lenders promise approval in minutes with no credit check -- they are tough to get rid of. Customers who want to repay their loan in full typically must contact the online lender at least three days before the next withdrawal. Otherwise, the lender automatically renews the loans at least monthly and withdraws only the interest owed. Under federal law, customers are allowed to stop authorized withdrawals from their account. Still, some borrowers say their banks do not heed requests to stop the loans.

To read entire article go to: http://www.heraldtribune.com/article/20130224/ARCHIVES/302241062/-1/todayspaper?Title=Banks-are-a-key-link-for-payday-loan-firms

 

 

U.S. Treasury Department Criticized for continuing to approve “excessive” pay for executives at firms that received taxpayer-funded bailouts during the financial crisis.

Washington Journal for Friday, February 8, 2013
Washington, D. C., to listen to recording go to http://www.c-span.org/Events/Washington-Journal-for-Friday-February-8/10737437933/

 

8:30am Christy Romero, Special Inspecter General for the Troubled Asset Relief Program

Topic: Guest will discuss a recent report released by her office (the Special Inspector General for the Troubled Asset Relief Program – SIGTARP) that criticized the U.S. Treasury Department for approving “excessive” pay for executives at firms that received taxpayer-funded bailouts during the financial crisis. To review the 2013 Report please click here Download 2013_SIGTARP_Bailout_Pay_Report[1]

SIGTARP Hotline Phone: (877) SIG-2009, online at www.sigtarp.gov

Banks Foreclosure Settlement: $8.5 Billion Deal Reached Over Foreclosure Abuse Claims

The compensation to more than 3.8 million borrowers — an average of $2,235 per person — will not help Florida homeowners who wrongfully lost their homes, said Jack McCabe, a Deerfield Beach-based housing consultant. http://www.heraldtribune.com/article/20130107/ARTICLE/130109716

“Is that really helping them get back into the housing market? No, it's barely giving them one month's rent,” McCabe said. “It's ‘go away' money, pocket change compared to what they may have lost, and will do little to reinvigorate the housing market.”

The Independent Foreclosure Review program is being replaced by a new settlement. You can read about it here:

http://beforeitsnews.com/foreclosure-gate/2013/01/its-settled-independent-foreclosure-review-to-provide-3-3-billion-in-payments-5-2-billion-in-mortgage-assistance-2443494.html

Attorney General Bondi Reminds Qualified Borrowers Who Lost Homes to Foreclosure to Submit Claims for Payment by January 18, 2013

TALLAHASSEE, Fla.—Attorney General Pam Bondi reminds Florida borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and who may be eligible for payment under the $25 billion national mortgage foreclosure settlement to file claims by Jan. 18, 2013. Additional reminders will be mailed to claimants next week.

Forms have been mailed to qualified borrowers, and they must be returned by Jan. 18, 2013. Borrowers should complete their claim forms and return them as soon as possible in the envelope provided, or file them online at www.nationalmortgagesettlement.com. Payment checks are expected to be mailed in mid-2013. Borrowers who believe that they may have missed their claim form because they changed their addressed recently may contact the settlement administrator at 1-866-430-8358.

“Approximately two-thirds of the people to whom notices have been sent have not filed claims. It is imperative that those who may be eligible for cash payments under the settlement submit their claims by the January 18^th deadline,” stated Attorney General Pam Bondi.

Eligible borrowers had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the nation’s five largest mortgage servicers that agreed to the settlement with the federal government and attorneys general for 49 states and the District of Columbia.

The settlement, which took effect in April, earmarked approximately $1.5 billion in payments for 2 million borrowers nationwide who lost their homes to foreclosure during that period and had their loan serviced by one of the settling servicers. In Florida, approximately $170 million is available for cash payments to Florida borrowers. All available funds will be distributed to those who file claims; none of this money will be returned to the banks or used by the states for any other purpose.

Free claim form assistance available.

Borrowers who have questions or need help filing their claims can contact the settlement administrator, toll-free, at 1-866-430-8358 or send questions by email to administrator@nationalmortgagesettlement.com. The information line is staffed Monday through Friday from (7 a.m. to 7 p.m. Central).

Payment won’t stop other legal claims.

Deadline to Request Review of Foreclosure is December 31 2012

https://independentforeclosurereview.com/

Spain: Government decrees 2-year moratorium on foreclosures

 MADRID, NOVEMBER 15, 2012 - The Spanish government announced a moratorium on foreclosures for low-income homeowners, Vice Premier Soraya Saenz de Santamaria told reporters after a cabinet meeting on Thursday.

The moratorium is part of a decree, which also sets up low-rent housing projects for low-income homeowners who were evicted after defaulting on their mortgage payments.

The decree covers large families, those with children under 3 years of age, families of the disabled or non self-sufficient, victims of gender violence, and all families making less than 1,600 euros a month.

''These are urgent measures to protect the most vulnerable families in the current crisis situation, so they won't end up on the street, and, if evicted, to make sure they have access to state housing projects,'' Saenz de Santamaria said.

The People's Bailout: Occupy Wall Street is forgiving personal debt - Should the United States Government do this?

Should the United States government buy junk debt and forgive portions of the loans to abate the mortgage foreclosure crisis?

http://kottke.org/12/11/the-peoples-bailout-occupy-is-forgiving-personal-debt

Let’s just explain technically how this works. Most debt is not held by the lender, but securitized, as we see with mortgages. When that debt goes bad, whether it’s student debt or housing debt or credit card debt or medical debt, the purchasers of the security want to get whatever they can for it. So they sell the “distressed debt,” often to debt recovery specialists who then hassle and harass the debtors in an effort to try and make money on the debt they purchased. Distressed debt gets purchased for pennies on the dollar. So the plan here is to basically buy up this debt, and instead of trying to collect it, the Rolling Jubilee will just cancel it. David Rees, an author and organizer with the Rolling Jubilee, explains that in a test run, the group purchased $14,000 of distressed debt for $500 and forgave it. “If you’re a debt broker, once you own someone’s debt you can do whatever you want with it—traditionally, you hound debtors to their grave trying to collect,” Rees wrote. “We’re playing a different game. A MORE AWESOME GAME.”

Good deal on fraud settlement: Editorial calling for support of funding to Florida Civil Legal Aid organizations

Attorney General Bondi Closer to Funding Civil Legal Aid Programs Foreclosure Assistance.

For full text of Tom Tryon's Editorial in the Herald Tribune click on this link.

http://www.heraldtribune.com/article/20121104/ARCHIVES/211041021/-1/todayspaper?Title=Good-deal-on-fraud-settlement

According to the terms of the national mortgage servicer settlement this year, $334 million dollars is to be used in Florida to help avoid preventable foreclosures, ameliorate effects of the foreclosure crisis, and enhance law enforcement efforts against financial fraud.

The risk of routing the funds through the Legislature is that the money could be diverted to the general fund, as it was in California, for uses unrelated to mortgage fraud and the housing crisis that decimated Florida and its people. Bondi insisted, to her credit, that the $334 million be spent based on the terms and spirit of the settlement.

Legal aid groups, such as local agencies Legal Aid of Manasota and Gulfcoast Legal Services, are funded with public and private donations. Twenty-three states provide legal-aid assistance for civil matters, but Florida does not. This year, the Legislature appropriated $2 million for legal aid -- a small sum in light of the need -- but Gov. Rick Scott vetoed the funding.

Justice Foreclosed: How Wall Street's Appetite for Subprime Mortgages Ended Up Hurting Black and Latino Communities

The economic crisis of 2008, which was devastating for the nation’s economy as a whole, was nothing short of disastrous for communities of color. The decades of progress toward full inclusion in the American dream that the civil rights laws of the 1960s enabled disappeared virtually overnight, stripping communities of color of their homes and their financial futures.Since the housing bubble burst, at least 3.5 million households have lost their homes to foreclosures. The crisis is clearly an economic issue, and one that continues to grip the nation. But it is also a civil rights issue: Latino and black home owners, and in fact entire Latino and black neighborhoods, bore the brunt of the foreclosure crisis, and continue to suffer disproportionately from its effects. Victimizing people of color this way also ended up undermining the economic security of all families and the stability of all communities across the country.  Download Justiceforclosed-singlepage-rel4