Most of the $338 million North Carolina is receiving as part of the blockbuster $25 billion mortgage servicing settlement announced last week will flow directly to underwater borrowers in the form of principal reduction and other foreclosure relief.
But each state government participating in the settlement will also receive a cash payment, and the states have wide latitude in deciding how to use it.
The state of North Carolina will receive $63.7 million from the settlement, about one-quarter of what the state's residents will get. Most of the money will be distributed to a number of state agencies for housing programs, an approach that homeowner advocates say puts North Carolina ahead of many of its peers.
- $20 million to the N.C. Housing Finance Agency, who will distribute the money to independent housing counselors.
- $12 million to independent legal assistance organizations.
- $10 million to the state’s general fund, the money appropriated across state agencies in the annual budget.
- $10 million to the State Bureau of Investigation and district attorneys’ offices for training in the prosecution of financial crimes.
- $6.3 million to the public school system.
- $5 million to the consumer protection division of the attorney general’s office, to investigate financial fraud and spread the word about the settlement.
States like Wisconsin and Missouri have already announced they are putting a much higher percentage of their take into the state's general fund, drawing criticism from political opponents who said more money should go to struggling homeowners. Observers of the deal in North Carolina said the state took a more balanced approach.
In North Carolina, the money to the general fund is intended to be restitution for the budget deficits spawned by the foreclosure crisis, as well as a standard reimbursement for attorney’s fees in negotiating the settlement, said Julia White, senior policy adviser in the state attorney general’s office.
A spokesman for N.C. House Speaker Rep. Thom Tillis, R-Mecklenburg, said it’s too early to speculate about what the money the state will receive will be used for. The office of State Senate Pro Tem Phil Berger gave a similar statement.
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8 comments:
Just what we expect from the clown President:
This is outrageous. Forty billion dollars of taxpayer monies could very well be used to get banks off the hook for their sloppy, negligent procedures in handling foreclosures.
Financial Times:
US taxpayers are expected to subsidise the $40bn settlement owed by five leading banks over allegations that they systematically abused borrowers in pursuit of improper home seizures, the Financial Times has learnt.The deal, agreed last week, calls for Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial to pay about $5bn in cash fines and to reduce monthly payments and loan balances for distressed US borrowers by as much as about $35bn.
However, a clause in the provisional agreement - which has not been made public - allows the banks to count future loan modifications made under a 2009 foreclosure-prevention initiative towards their restructuring obligations for the new settlement, according to people familiar with the matter. The existing $30bn initiative, the Home Affordable Modification Programme (Hamp), provides taxpayer funds as an incentive to banks, third party investors and troubled borrowers to arrange loan modifications.
Neil Barofsky, a Democrat and the former special inspector-general of the troubled asset relief programme, described this clause as "scandalous".
"It turns the notion that this is about justice and accountability on its head," Mr Barofsky said.
Read more: http://www.americanthinker.com/blog/2012/02/secret_clause_in_mortgage_agreement_forces_taxpayers_to_foot_the_bill_for_banks.html#ixzz1mfC3g2ud
Read more: http://www.americanthinker.com/blog/2012/02/secret_clause_in_mortgage_agreement_forces_taxpayers_to_foot_the_bill_for_banks.html#ixzz1mfBhiNY7
"This is outrageous. Forty billion dollars of taxpayer monies could very well be used to get banks off the hook for their sloppy, negligent procedures in handling foreclosures."
The article you referenced is saying subsidized. It could be partially funded by the taxpayer, not fully.
40 billion of tax payer money COULD be or WILL be? It isn't outrageous if it wont be close to 40 billion of taxpayer money. It wont be. HAMP is only a 30 billion $ program (much already spent). Also HAMP funds simply go toward approving mods, not the cash settlements or not the writedowns which are the lionshare of the settlement. So your claim is obviously isn't realistic for numerous reasons.
Additionally, the tax payer funds are incentives given to banks to approve mods. these would be future mods and I don't see how the banks getting credit toward the 40 billion settlement is an issue. If the bank writes down a loss, that is fulfilling the settlement. The only tax payer funds that are used under HAMP are one time fees upfront to the bank for doing the mods. They are no where near the amounts they are writing down the losses regardless.
So basically every penny is going back to a government agency. Not one homeowner will be made whole. Instead, "agencies" will get money. That is so typical. Bleed the banks who in turn bleed the taxpayer - and all of the people screwed by the banks get zero. AWESOME.
From the article: "The state of North Carolina will receive $63.7 million from the settlement, about one-quarter of what the state's residents will get."
Dolleywrote:
"So basically every penny is going back to a government agency." ***WRONG 25% is 75% is going directly to homeowners.***
"Not one homeowner will be made whole."
***WRONG 75% is going directly to homeowners.***
"Instead, "agencies" will get money."
***WRONG agencies will get 25% of the money 75% is going directly to homeowners.***
More racist liberal democrat socialist Obama shakedown corporate extortionism in the mold of Jackson and Sharpton partners in crime who made a living stealing off capitalism and spending the loot on booze cocaine and new cadillacs.
16 trillion debt with no end in sight for this bandit. 11 months left of this criminal activity and taxpayers get stuck with 6 trillion reparations and counting they never owed.
@anonymous with the Obama, Jackson and Sharpton post
SHUT THE HELL UP!
Read the Post Anon - nothing goes to individual homeowners -
$20 million to the N.C. Housing Finance Agency, who will distribute the money to independent housing counselors.
$12 million to independent legal assistance organizations.
$10 million to the state’s general fund, the money appropriated across state agencies in the annual budget.
$10 million to the State Bureau of Investigation and district attorneys’ offices for training in the prosecution of financial crimes.
$6.3 million to the public school system.
$5 million to the consumer protection division of the attorney general’s office, to investigate financial fraud and spread the word about the settlement.
Dolley - read above the breakdown...
"The state of North Carolina will receive $63.7 million from the settlement, about one-quarter of what the state's residents will get."
The state gets 1/4 of what residents will get...
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