New Source of Mortgage Mediation Funds
Seeing Success, States Are Adding and Expanding Mortgage Foreclosure Mediation Programs
Center for American Progress
May 17, 2011
Banks offered $5 billion in an attempt to settle an investigation by 50 state attorney generals of mortgage servicing fraud by mortgage lenders and services which contributed to the national housing crisis. The amount is disappointing in light of the $20 billion penalty that was previously discussed.
In light of victimized homeowners, a portion of the settlement will go towards mortgage mediation at the state level so housing markets nationwide can begin to heal. Studies from the Center for American Progress found that “foreclosure mediation is working to help thousands of homeowners keep their homes while returning greater value to investors and communities than they would see in foreclosure.” While state governments recognize the benefit of mediation programs, a major problem for all states today is funding.
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