Housing Secretary Shaun Donovan Backs Mortgage Settlement Plan

Friday, February 10, 2012

The U.S. Housing Secretary praised the federal-state settlement endorsed by the state’s Attorney General on Friday, saying help is on the way for homeowners facing foreclosure.

New York joined a $25 billion state and federal settlement with five major banks that would resolve claims over "robo-signing" and other abuses of the foreclosure process on Thursday.

The agreement will result in principal and interest rate reductions for millions of Americans whose outstanding balances on their mortgages are worth more than their homes. It also includes provisions to pay down loan principles and that banks have to agree to new set of loan servicing standards

 “It means that if they lose your paperwork, if they foreclose on you wrongly, any of those things, we now have real, hard penalties that are due to the federal government and the states and that will be overseen by an independent monitor with court authority,” Housing and Urban Development Secretary Commissioner Shaun Donovan told WNYC's Brian Lehrer Show on Friday.

Donovan said the banks in the $25 billion settlement, Ally, Bank of America, Citibank, J.P. Morgan Chase and Wells Fargo, account for two out of every three mortgages serviced in the U.S. He said officials are negotiating to get nine more banks to sign onto the deal.

In August, New York Attorney General Eric Schneiderman, claimed the draft agreement would have given banks broad immunity from. Now, Schneiderman has given it his support.


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Comments [1]

Salvatore from Fort Lauderdale-Florida 33309

Dear Mr. Secretary Shaun Donovan,
I saw you on an “ABC” Special then on the Bill Mahar Show on March 9th. My name is Salvatore J. Costa, I’m a 100% Service Connected Disabled Combat Veteran of Vietnam.
My question to you sir is when wall st Bankers walked off with Billions of Dollars, why wasn’t anyone charged of any crime? Then the property values declined and many home owners as myself that mortgages were up to date are now “underwater”.
Also as others I have lost all my equity and I’ll never be able to own my home after 14 years of paying on time. So now I’m actually renting my home from the bank. I don’t even know if the bank owns the note on my home due to the selling of bundled mortgages. Why don’t the banks just adjust the mortgages to equal the real property market value? So good people don’t have to foreclose and can stay in their homes.
My mortgage is about 2 ½ times more than the property value. The banks were bailed out, how about the home owners that have paid their mortgages and are up to date, but is still underwater. Where is the justice for those who pay their bills?
Is there anything the department of housing and urban development can do to help me and others in the same situation? I’ve tried numerous avenues to try and rectify this situation with no results. I even tried a lawyer that ripped me off for $3,400.00. Wells Fargo holds my mortgage and they won’t even discuss any type of resolution. They basically dismissed me. It seems that our technology and greed has preceded our conmen sense.
I would gently appreciate any help toward a solution of my dilemma.
Thank you,
Salvatore J. Costa

Mar. 19 2012 01:55 PM

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