Bank of America’s Take on the $8.5 Billion Settlement Agreement

by on Bank of America Foreclosures

Bank of America Red Sign

Imagine losing your home due to bank negligence and robo-signing and then struggling to keep your head above water in the following months, all while the lender that is responsible for your circumstances is sitting back and continuing to bask in its assets without much of a concern in the world. This resentment and overall feeling of helplessness and frustration is exactly what many Americans have felt ever since the real estate market crash.

Then, imagine foreclosure settlement agreements being made by your state’s attorney general and although you have a small amount of hope that the agreement will help you and your current situation, you cannot help but to think that it is merely a slap on the wrist. These are the same feelings that many former homeowners had after the initial foreclosure settlement agreement, which involved the top five lenders and included Bank of America. Now, after the second foreclosure settlement agreement has been reached, it is almost like adding salt to the wounds.

The most recent foreclosure $8.5 billion foreclosure agreement ended the independent foreclosure review process, which essentially relieved lenders of the burden of paying “independent contractors” a fortune. Many lenders, including Bank of America, are very glad to be done with the independent foreclosure review process and are essentially able to put the entire mess behind them.

Coincidentally, Bank of America has also reached an $11.6 billion settlement with Fannie Mae. Here is a video discussing this agreement:

Both agreements are relatively puny for a bank that brought in over $115 billion in revenue last year alone.

At the end of the day, Bank of America – and other key lenders – obtain another slap on the wrist and are barely seeing the consequences of their faulty actions and inactions.

What is Bank of America’s View on the Settlement Agreement?

Like most lenders, Bank of America is glad to have all of this behind them. Although lenders will have to pay some money to every single homeowner who received a notice of foreclosure throughout 2009 and 2010 as well as provide additional funding for more loan modifications and foreclosure prevention, Bank of America is relieved.

In fact, Bank of America CEO Brian Moynihan said that the recent settlement is merely “a bad hour” for the bank. Considering how much homeowners went through, you would think that the CEO of these major corporations would have some empathy and some respect. Instead, Bank of America is essentially boasting about the fact that at the end of the day they are walking away from the entire situation – that they caused we might add – with minor scratches.

It is sad to think that we live in a place where major lenders, like Bank of America, can gracefully walk away from horrible situations without much suffering. Instead of being held responsible for the damage they have caused, these major lenders are being slapped on the wrist while your everyday American suffers the consequences of bank actions – and inactions.

Image source: Lowe R. Llaguno / Shutterstock.com

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