National Mortgage Settlement Details Posted on the Web

So maybe there is a settlement after all. Details have been posted on the National Mortgage Settlement web page today. http://www.nationalmortgagesettlement.com/ I won't try to summarize all this here immediately, but stay tuned for analysis of the good, the bad and the ugly. News outlets are reporting that settlement documents were also filed in federal court in Washington, D.C., today. The documents filed include a complaint and five consent judgments with hundreds of pages of detail on the settlement but much less on the underlying offenses. The settlement with state and federal regulators was announced February 8, and details have been eagerly awaited since then.

Comments

[Tom Stone]

Trepidation is a better word. How badly will the public, the pension funds and other investors be screwed? Are they actually going to give precedence to second liens over first liens? Is this merely a craven and disgusting giveaway to a pack of thieves or have they managed to screw things up badly enough to destroy the Real Estate market for decades or perhaps permanently?

[Anon]

http://www.americanbanker.com/issues/177_49/25b-mortgage-servicer-settlement-1047430-1.html?zkPrintable=true

Based on the American Banker article above, it looks like consumers are barred from suing the banks for servicing misconduct under the RESPA and most other consumer protection acts and whistleblowers are barred from suing for servicing misconduct under the False Claims Act.

Is this correct? Does the DoJ have the power to abrogate Congressionally granted consumer rights in this way? Or am I just failing to understand what's going on here.

[Jean Braucher]

HUD denies that borrowers are giving up any direct rights that they have in litigation or under restitution programs run by federal banking regulators. It even says that borrowers can get payments under the settlement and additional compensation if they were hurt more. http://blog.hud.gov/2012/03/12/myth-vs-fact-setting-the-record-straight-about-historic-mortgage-servicing-settlement/ My reading of the B of A consent judgment suggests that private rights of action (rights to sue) have been preserved. Haven't slogged through all five proposed consent judgments yet, but probably the language on this is standard.

[Nicholas]

It should be like this, to be fair settlements are needed, your the resonsible on it.