Philadelphia City Council Says No Deal for Mortgage Lenders
Image: Shutterstock
Philadelphia City Council passed a resolution this morning calling on the Federal Taskforce of States Attorneys General to pursue legal action against banks that’ve been involved in mortgage abuse.
The Resolution, introduced by Councilwoman Maria Quinones Sanchez, is a direct rebut to the federal government, which has been working out a deal they say would help those hurt by the mortgage crisis and end a painful chapter of American history.
In Lamen’s Terms: The feds are close to settling on a deal with five major banks—JPMorgan Chase, Wells Fargo, Citibank, Bank of America and Ally Financial—partially responsible for predatory lending practices which led to the 2008 economic meltdown. But the number the government and banks have come up with, $25 billion, is far less than the $750 billion that some estimate is needed across the country. The deal would ultimately send about 750,000 Americans checks for about $1,800 and make it easier for those at risk of foreclosure to restructure their home loans. In Pennsylvania alone, homeowners are still underwater by over $5 billion, according to statewide community activist organization Action United. That includes $3.8 billion in Philadelphia.
The deal was sent from the federal government to the states. And Philadelphia City Council is now urging the Attorney General to spit on the deal, and instead “pursue legal action against banks involved in mortgage abuse, and instead limit their settlement to specific instances of mortgage fraud which they were tasked to address,” according to the resolution’s language.
It also notes that New York State Attorney General Eric Schneiderman has spoken out against the deal, since it’d restrict his office from proceeding with an investigation already under way. Time to look sharp, Pennsylvania.
$25 billion is a joke. Think about this…..there are about 129 million homes in the United States. 40% have no mortgage. 60%, or about 77,000,000 homes have a mortgage. The average mortgage payment in this country, nationwide, is about $1200. Do the math for a single month if your calculator has enough columns. These banks are laughing all the way to the ……well, you know the rest of the story. At the settlement amount, insulting us with $1800 only covers 1.38 million mortgagees. How about the other 76,000,000? How about the 10,000,000 more foreclosures expected this year alone? Who thought of this ridiculous slap on the wrist idea anyway, and how much is this costing the taxpayers again?
Just re-read the article, and my apologies. If the $1800 to 750,000 is the settlement, where does the other $11,500,000 go. Oh yes, administrative costs. Give us a break.
The average homeowner is $50K underwater, $1800 is pocket change.
[...] year Philly Weekly: City Council introduces “Land Bank” bill; advocates see hard work ahead Philly Weekly: Philly City Council says no deal for mortgage lendersSEPA: Philly Burbs: Fox hunting suspended in [...]
[...] year Philly Weekly: City Council introduces “Land Bank” bill; advocates see hard work ahead Philly Weekly: Philly City Council says no deal for mortgage [...]
[...] PW-Philadelphia Weekly [...]
[...] PW-Philadelphia Weekly [...]