Breaking Down the Mortgage Settlement

Terrific X-Ray of the mortgage settlement from Cora Currier of Pro-Publica:

$3 billion: total for which banks can be credited for offering refinancing to underwater homeowners who owe more than their homes are worth. (There are questions about exactly how the credits will work and why the banks are being given incentives rather than punishment.)

$17 billion: total from the settlement that banks can be credited for offering loan modification ($10 billion) and other forms of “consumer relief” ($7 billion) for underwater borrowers — counted separately from the refinancing incentives.

11.1 millionunderwater mortgages in the U.S.

$717 billion: negative equity from those underwater mortgages.

3 million: estimated underwater mortgages owned or guaranteed by government-controlled Fannie Mae or Freddie Mac, which are not covered by the settlement.

5 percent: portion of the country’s underwater mortgages that might qualify for modification under the settlement, according to a Brookings Institute estimate. (Officials have put the number closer to 10 percent.)

There’s more at the link below . . .

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Source:
Breaking Down the Mortgage Settlement: How Far Does $26 Billion Go?
Cora Currier
ProPublica, March 19, 2012, 11:52   
http://www.propublica.org/article/breaking-down-the-mortgage-settlement

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