Just one day after the big bank Citigroup announced their $7 billion settlement with the US Justice Department for selling bad mortgage-backed securities, Bank of America comes out with a settlement offer.
Bank of America has offered a $12 billion dollar settlement in negotiations with the US Justice Dept. However, it is said that the Justice Department is looking for many more billions.
Bank of America is the nations second largest bank. They, like many other big banks in the US, are facing numerous lawsuits and investigations by the Justice Department. These investigations were ignited due to the shady lending practices used to sell mortgage-backed securities to thousands of home buyers in America.
These mortgages eventually fell through and thousands of people lost their homes. Many of the big banks are charged with knowingly selling these securities and this makes them in part responsible for the horrific economic crash of 2008.
Many homeowners either lost their homes, struggled to fight foreclosure or are STILL struggling financially due to the carelessness and greed.
A majority of the home owners that ended up losing their homes over the debacle had to obtain rental properties because their credit histories were tarnished as well. The utter destruction that occurred for people in the housing market was one of the worst falls in our history.
In 2012, under the Obama Administration and new Act passed by congress, FIRREA (Financial Institutions Reform, Recovery and Enforcement Act) a special task force was created called ‘The Financial Fraud Enforcement Task Force’s RMBS Working Group’. RMBS stands for residential mortgage-backed securities. These mortgage backed securities are what were knowingly sold to thousand and thousands of people causing the housing market crash of 2008.
Big banks such as Citigroup, Bank of America, JP Morgan Chase, and others have all been or are currently being investigated for selling these crap securities. As a result, the american economy started a horrible downward spiral that placed our economy in an economic recession. Thankfully, we have climbed our way back to recovering, but the damage that was done resulting in numerous families losing their homes, has not been completely resolved.
It is hard to say that such a loss CAN be resolved, but our nations leaders have implemented special task forces to hold the financial institutions accountable for their actions to the american people. This is in hopes that some form of restitution or assistance is offered for those that suffered a loss.
These settlement negotiations are one of the ways that the Justice Department is attempting to secure some kind of justice for the home owners. In these settlements, assistance for underwater homeowners, distressed borrowers and the communities that were affected are secured in a variety of ways. Loan forgiveness, interest rate reductions, financing for affordable rental housing, and other financial stress reliefs are sought.
So far, the Financial Fraud Enforcement Task Force, has recovered $20 billion so far for consumers and investors in the US. Investigations will continue with several other banking companies.
For more information on getting your family back in a home you can call your own, Contact Us about your options. We are here to help!
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