FT Alphaville gives us the Cliff note version of the national mortgage fraud bank settlement — available in easy to follow graphic or text form:
Here is the breakdown:
Under the agreement, the five servicers have agreed to a $25 billion penalty under a joint state-national settlement structure.
• Servicers commit a minimum of $17 billion directly to borrowers through a series of national homeowner relief effort options, including principal reduction. Servicers will likely provide up to an estimated $32 billion in direct homeowner relief.
• Servicers commit $3 billion to an underwater mortgage refinancing program.
• Servicers pay $5 billion to the states and federal government ($4.25 billion to the states and $750 million to the federal government).
• Homeowners receive comprehensive new protections from new mortgage loan servicing and foreclosure standards.
• An independent monitor will ensure mortgage servicer compliance.
• States can pursue civil claims outside of the agreement including securitization claims as well as criminal cases.
• Borrowers and investors can pursue individual, institutional or class action cases regardless of agreement.
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