Thousands of Idaho homeowners could benefit from mortgage settlement, Wasden says
Thousands of Idaho homeowners could benefit from the nationwide settlement announced Thursday with the country's five biggest mortgage servicers.
Idaho will receive nearly $114 million under the settlement, including $100 million to help homeowners and nearly $14 million to benefit state coffers, Attorney General Lawrence Wasden said.
The money will help homeowners who are under water on their mortages — that is, they owe more than their homes are worth.
About $75 million is being set aside to help them with loan modifications and other direct relief. Another $15 million will help underwater homeowners to refinance their loans. And $10 million will go to cash payments averaging $1,500 to $2,000 each for about 5,000 Idaho borrowers who lost their homes to foreclosure from 2008 through 2011 because of substandard loan-servicing practices.
The Idaho money is part of a $25 billion state-federal settlement that resolves state and federal claims relating to mortgage origination, servicing, and foreclosure practices of Bank of America, Citi, J.P. Morgan Chase, Ally, and Wells Fargo. Together, these companies service about half of the U.S. mortgage loan market.
Mortgages owned by mortgage giants Fannie Mae and Freddie Mac are not covered by the deal.
“The settlement holds the participating banks accountable for their unacceptable mortgage servicing and foreclosure practices and provides relief to homeowners,” Wasden said. “Backed by a federal court order, the settlement will aid homeowners with enforceable changes to how their loans are serviced.”
The settlement is the result of an 18-month multistate law enforcement investigation of the participating banks’ servicing practices. The investigation began in response to allegations that the banks were filing fraudulent documents with the courts in judicial foreclosure cases. A judicial foreclosure is one that is conducted under the supervision of a court. While Idaho allows for judicial foreclosures, it is not widely used here. In Idaho, foreclosure is most often done by “advertisement and sale.” In such foreclosures, the lender does not file documents in court. Instead, the lender or servicer notifies the borrower of the default and the lender’s decision to sell the property at a trustee’s sale.
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But who takes out payday loans? Poor people who usually don't have enough money to pay for basic necessities, so they need a little extra cash until their next paycheck. With all due respect to the private sector, the idea of soaking these kind of
If payday lenders go out of business in Idaho, consumers might turn to the internet to get fast cash from lenders that aren't regulated by the state, Larsen said. The bill's sponsors said they aren't trying to shut down the payday loan industry,
Idaho lawmakers are considering legislation that would limit the amount of interest payday loan lenders can charge. A bill introduced earlier this month, with bipartisan support, would allow maximum interest of 36 percent on these short-term small
NPA BY TYPE AND LOCATION December 31, 2011 % of E. Loan North Oregon, type Idaho - Magic Greater SW Idaho to Eastern Valley Boise excluding total (Dollars in thousands) Washington Idaho Area Boise Other Total NPAs
Another $15 million will help underwater homeowners to refinance their loans. And $10 million will go to cash payments averaging $1500 to $2000 each for about 5000 Idaho borrowers who lost their homes to foreclosure from 2008 through 2011 because of
Idaho Demonstrators: Payday Loans Are Heartbreaking | Cash ...
The Valentine’s Day brought some passionate messages this year. A group of activists decided to visit different payday lenders in the Treasure Valley, Idaho this Tuesday with posters depicting broken hearts. This was to say that the loan interest rates of 400% maximum were heartbreaking for human hearts and budgets.
John Cornett, an Idaho Community Action Network member, who participated in the demonstration, called the payday loan industry a devastating force in their community.
House Bill 470 has overcome the payday loan interest rates at 36% demanding lenders to provide borrowers with a list of all rates and fees in a written form.
If it becomes legitimate, the bill would most likely ruin the payday lending industry of Idaho, mentioned the chief of the Idaho Consumer Finance Bureau, Michael Larsen.
In 2010, Montana issued a law that capped interest rates of 36%. As a result, several payday lenders closed their businesses, as reported the Daily Inter Lake in Kalispell, Mont.
Michael Larsen, in his turn, mentioned that if payday lenders went out of business in Idaho, the consumers would have turned to the Internet to get fast cash advances from institutions that are not governed by the State.
Fairer Interest Rates For PeopleThe sponsors of the bill claimed they weren’t trying to destroy the payday loan industry , adding that they only wanted fairer interest rates for the people who are not able to get a personal loan.
Sen. Lee Heider who sponsored the bill along with Democratic Rep. Elaine Smith, mentioned that our society was not as well now as it had been before. The sponsors are now trying to have an audience with the House Business Committee the next week. At present, there are 222 payday lenders in Idaho, as showed the reports of the Department of Finance. And only 10 persons were unsatisfied with the industry work in 2010.