The Wall Street Journal reports today that the nation’s largest banks currently seek to settle claims made by state and federal officials of improper mortgage-servicing practices through a payout of $5 billion. These claims arose after it was revealed that the largest banks failed to oversee the servicing effots including the foreclosure process of thousands of homes. While $5 billion is a lot of money, it certainly will not go far in resolving the current mortgage mess and certainly will not change the situation for hundreds of thousands who are in default on their home. While I applaud any effort made by state and federal officials to hold banks accountable for the mortgage bubble and subsequent collapse, these efforts fail to deter the same behavior in the future. For example, Countrywide grossed nearly $5 billion in profits in 2006 alone. While a $5 billion payout by banks to address mortgage servicing errors is a start, it doesn’t start to fix the mortgage mess.
If you have been a victim of mortgage-related fraud or negligence, call our office to discuss riverside foreclosure litigation strategies. You may be a victim of predatory lending practices and could be entitled to compensation. Call today at (877) 346-7411.