March 19, 2012
On Monday, March 12, 2012, the federal government released details of the $25 billion dollar national mortgage settlement stemming from the "robo-signing" scandal. The agreement with Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc. (formerly GMAC) is designed to provide eligible homeowners with relief as well as preventing future abuses. Along with the $20 billion of relief for homeowners, the servicers will make $5 billion in payments to the states and federal government and implement across the board servicing standards. The servicing standards and relief requirement will be implemented over the next several months and will be prioritized based on the importance to borrowers and difficulty of implementation. Check nar.realtor for updated information on how the new standards may affect real estate transactions.