I had the great misfortune this Friday to attend a meeting with the Attorney General’s office on the proposed settlement with the US Government, 49 states and the five major money changers. Here are the problems as I see it, as updated by this meeting:
1. The document still isn’t in writing. At this point, I almost wait for these attorneys general to make the same mistake that many customers made and continuing to make: Taking the word of these “banks” instead of making them put everything in writing. I was told by a real-life assistant attorney general that it’s a “done deal.” I’m sorry; in this context, over $25 billion, it should be in writing.
2. The cash payments won’t even begin to be paid until TWO THOUSAND THIRTEEN. That’s after the Mayans come!
3. The “modification” part of the agreement, which the Assistant Attorney General said would lower payments by as much as a hundred dollars a month, only applies to loans which are OWNED by the big five banks. Not serviced; owned. This is a huge distinction, and one that means most loans WON’T be modified (are you surprised?).
4. Of course, Fannie and Freddie are uncovered by this, and so are the worst of the worst (Saxon, Ocwen, etc.).
Keep fighting the good fight, and trying to meet them in court. We don’t need no stinkin’ badges anyway …
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