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Indiana to be included in national robo-signing settlement

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Indiana Attorney General Greg Zoeller announced Thursday that Indiana would be one of 49 states benefitting from the federal government's settlement with five major mortgage lending banks and servicing institutions.

The state’s share of the settlement with Ally, Bank of America, Citi, JPMorgan Chase and Wells Fargo will be about $145 million. The settlement agreement stems from the banks' foreclosure abuses and fraud as well as unacceptable nationwide mortgage servicing practices.

Zoeller said the settlement will result in reduced loan balances to benefit homeowners who are behind on their payments and who are "underwater" or owe more than their homes are worth.

Indiana's borrowers will receive an estimated $30 million in benefits from loan term modifications and other direct relief. As many as 13,000 Indiana borrowers who lost their home to foreclosure from Jan. 1, 2008, through Dec. 31, 2011, and suffered servicing abuse could qualify for about $26.3 million in cash payments. The AG’s office will receive a direct payment of about $45 million to help fund consumer protection, state foreclosure prevention efforts and related programs. The Department of Financial Institutions will receive an estimated $1 million.

The value of refinanced loans to Indiana's underwater borrowers would be an estimated $43 million.

"This national settlement offers immediate help to many people in Indiana and also allows an opportunity for the national housing market to recover from the crisis of 2008, hopefully sooner rather than later," Zoeller said.

The final agreement, through a consent judgment, will be filed in United States District Court in Washington, D.C., and will have the authority of a court order.

Because of the complexity of the mortgage market and this agreement, which will span a three-year period, in some cases participating mortgage servicers will contact borrowers directly regarding loan modification options. However, borrowers are advised to contact their mortgage servicers to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement.
 

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  1. File under the Sociology of Hoosier Discipline ... “We will be answering the complaint in due course and defending against the commission’s allegations,” said Indianapolis attorney Don Lundberg, who’s representing Hudson in her disciplinary case. FOR THOSE WHO DO NOT KNOW ... Lundberg ran the statist attorney disciplinary machinery in Indy for decades, and is now the "go to guy" for those who can afford him .... the ultimate insider for the well-to-do and/or connected who find themselves in the crosshairs. It would appear that this former prosecutor knows how the game is played in Circle City ... and is sacrificing accordingly. See more on that here ... http://www.theindianalawyer.com/supreme-court-reprimands-attorney-for-falsifying-hours-worked/PARAMS/article/43757 Legal sociologists could have a field day here ... I wonder why such things are never studied? Is a sacrifice to the well connected former regulators a de facto bribe? Such questions, if probed, could bring about a more just world, a more equal playing field, less Stalinist governance. All of the things that our preambles tell us to value could be advanced if only sunshine reached into such dark worlds. As a great jurist once wrote: "Publicity is justly commended as a remedy for social and industrial diseases. Sunlight is said to be the best of disinfectants; electric light the most efficient policeman." Other People's Money—and How Bankers Use It (1914). Ah, but I am certifiable, according to the Indiana authorities, according to the ISC it can be read, for believing such trite things and for advancing such unwanted thoughts. As a great albeit fictional and broken resistance leaders once wrote: "I am the dead." Winston Smith Let us all be dead to the idea of maintaining a patently unjust legal order.

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  3. Do you know who the sponsor of the last-minute amendment was?

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