Justice Center Statement: National foreclosure settlement a positive step, but vigilance still needed
- New rules and potential for enforcement of servicing standards. The settlement will be a good thing if it can actually improve mortgage servicing and result in fewer homeowners losing homes to foreclosure.
- To address those homeowners at risk of foreclosure the settlement will bring badly needed resources to NC homeowners by helping with housing counseling, foreclosure defense, and mortgage refinancing.
- Restitution to people who have unfairly lost their homes is a key issue. While money is allocated for compensation, there are concerns among consumer advocates that the funds will not truly compensate foreclosed homeowners for their losses or enable these homeowners to achieve homeownership again.
- Prosecution of lending and financial crimes: the settlement allocates $10 million to prosecute crimes and an additional $5 million to stop lending and financial fraud.
“In terms of future conduct, we hope that the settlement is a step in the right direction in reforming the mortgage industry and in forcing mortgage servicers to treat homeowners fairly,” said Sparko. “In this regard, there is more that must be done to restore fairness and responsible conduct in the mortgage industry.”
FOR MORE INFORMATION CONTACT: Rochelle Sparko, NC Justice Center, (919) 410-7645