Arab Today, arab today banks agree 25 bn deal for us homeowners
Last Updated : GMT 17:43:15
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.  

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*

Arab Today, arab today banks agree 25 bn deal for us homeowners Arab Today, arab today banks agree 25 bn deal for us homeowners

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
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