In the aftermath of a $25 billion settlement between state and federal officials and five of the nation’s biggest banks over foreclosure abuse, both proponents and critics have chimed in.
Supporters say the deal will provide long-overdue relief to homeowners struggling to make their mortgage payments and stay out of foreclosure. Opponents complain that the proposed deal should not have been finalized until potentially illegal practices had been more thoroughly reviewed.
Christopher Peterson, a Professor at the University of Utah S.J. Quinney College of Law, is a national expert on foreclosures. He recently told The Salt Lake Tribune that he believes the settlement is too small to be effective. “The thing I think is important to understand is the size of this is nowhere big enough to fill in the hole in our national economy, where consumers owe more on their homes than they’re worth.”
The five banks involved in the settlement are Bank of America, Citi, JPMorgan Chase, Wells Fargo, and Ally/GMAC. According the same Tribune article, these represent about 60 percent of loans in Utah.
To read the entire Tribune article, click here.