It’s gone. It’s done. I can see the Shire.
The US District Court judge for the District of Columbia signed off, finally, on the big $25 billion foreclosure settlement between five banks, the federal government, and most of the states. On Wednesday, Judge Rosemary Collyer approved the settlement, which was announced two months ago. The $25 billion settlement will be divvied up by the states and is suggested to be used to ease financial burden on improperly foreclosed homes and help pursue negligence in the future. However, as I’ve mentioned before, some states are going to use it for whatever they feel like. Georgia in particular is using the money to support local infrastructure, presumably telling the federal government “you can’t tell me what to do, you’re not my real dad”, slamming its door and hiding under the covers afterwards.
Foreclosures ran rampant throughout the country
Last Thursday, the federal government and 49 state attorneys general announced that they have come to an agreement with five large mortgage providers over allegations concerning illegal business practices. The five banks (Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo) were accused of a lack of due diligence when creating and signing documents related to foreclosures. The $25 billion settlement, which guarantees that the case will not go to court, is the largest multistate settlement since the 1998 tobacco industry case. All states except Oklahoma participated.
It is important to note that, though this marks a major victory for those affected by the mortgage crisis, some individual claims may still be eligible to made against the companies. To find out how you or your home mortgage can benefit from this settlement, visit the settlement’s web page.
