banks agree 25 bn deal for us homeowners
Last Updated : GMT 22:40:52
Arab Today, arab today
Arab Today, arab today

Banks agree $25 bn deal for US homeowners

Arab Today, arab today

Arab Today, arab today Banks agree $25 bn deal for US homeowners

Washington - AFP

President Barack Obama and top US mortgage lenders unveiled a landmark $25 billion deal Thursday to help struggling homeowners get back on their feet and to untether the moribund housing market. Five of the country\'s top banks, the federal government and 49 states -- all except Oklahoma -- agreed to help homeowners cut their mortgage debt, avoid default or get compensation for unfair home repossessions. President Barack Obama said the pact would \"turn the page on an era of recklessness that has left so much damage in its wake.\" The agreement provides a glimmer of hope for the four million families who lost their homes during the financial crisis and the millions more who watched the market value of their homes slump while the cost of their mortgages remained at boom-era prices. It also offers an estimated $2,000 in compensation for some of those who lost their homes amid questions about banks losing paperwork and signing documents without due process -- so-called robo-signing. While the three-year deal will not come close to cleaning up all the damage caused by the crisis, there is expectation it will be a boon for the market and the broader economy. The housing bubble was at the center of the 2008 financial crash, the worst in 80 years. In the boom years, many Americans borrowed beyond their means to buy homes as Wall Street overdosed on exotic mortgage-based derivatives, further inflating the market. The deal announced Thursday will see at least $17 billion spent by the banks on principal reduction for borrowers who are delinquent or at imminent risk of default, $3 billion for borrowers who are underwater on their mortgages, and $1.5 billion for those whose homes were foreclosed from 2008 to 2011. Around $4.3 billion will be distributed to states. The details -- particularly how much is used to write-off mortgage principal -- will determine just how much the deal helps the economy, according to Ted Gayer, co-director of economic studies at The Brookings Institution. \"A lot of the other stuff has already been done with marginal effects,\" he said. \"Lets say we get $10-20 billion of principal reduction... $10-20 billion doesn\'t seem huge when you are talking about $700 billion in underwater equity, so I would not expect huge effects.\" \"The only caveat is there could be an effect from some sort of resolution of uncertainty for the banks.\" For Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial, the deal begins to close the curtain on a fraught period marked by multiple law suits and government probes. Supporters hope the deal will make banks more willing to resume lending and, if successful, will show banks the benefits of future voluntary writedowns. \"A final agreement can play an important role stabilizing and providing certainty and confidence to the housing and mortgage markets,\" said David Stevens, head of the Mortgage Bankers Association. But US Attorney General Eric Holder was quick to stress the deal does not give criminal immunity to lenders, or to traders who improperly sold mortgage-backed securities. \"It does not prevent state and federal authorities from pursuing criminal enforcement actions,\" he said, adding that a new task force was looking into how Wall Street securitized mortgages. The deal notably does not include Fannie Mae and Freddie Mac, which hold the bulk of home loans in the United States. California Attorney General Kamala Harris said she for one would try to forge a deal with the two government-backed lenders. \"I will continue to fight for principal reductions for the approximately 60 percent of California homeowners whose loans are owned by Fannie Mae and Freddie Mac,\" she said. Bank shares were mixed amid the news. Bank of America\'s shares crept up 0.6 percent, but JPMorgan Chase fell 1.2 percent, Citigroup lost 1.7 percent, and Wells Fargo gave up 0.2 percent. Oklahoma, the sole holdout, said it had reached a \"independent\" deal worth $18.6 million. \"We had concerns that what started as an effort to correct specific practices harmful to consumers, morphed into an attempt by President Obama to establish an overarching regulatory scheme,\" the state\'s Republican Attorney General Scott Pruitt said in a statement.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

banks agree 25 bn deal for us homeowners banks agree 25 bn deal for us homeowners

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

banks agree 25 bn deal for us homeowners banks agree 25 bn deal for us homeowners

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday