Here’s an excerpt:

Before the settlement, we learned that nearly every aspect of the robosigned documents was false. None of the details were ever reviewed. The signatures attesting to the review of the documents were fabricated — made by someone other than the person whose name was on the document. Neither person — the supposed signatory to the document nor the hired forger — ever validated the facts of each case. All of the safeguards put in place to make sure foreclosures were done correctly and legally were bypassed. Even the notary stamps were bogus — they were not real, and not signed by a notary to validate that the signer and the signature matched…

The bigger issue is the economics of criminality. Most people who get caught committing crimes are punished. Commit a felony — if you run a bank — and your shareholders pay a monetary fine. Violating the law has merely become the banker’s cost of doing business.

Thus, the robosigning agreement has allowed the mass production of perjury. It has gone unrecognized and unpunished. It has made perjury a business expense, like travel or office furniture. The same reckless approach to giving loans to unqualified people was institutionalized, leading to another reckless approach to foreclosing homes.

Read the whole thing here: Foreclosure settlement a failure of law, a triumph for bank attorneys

A $25 billion settlement with five of the largest banks over robosigning and other egregious fraud abuses, making it one of the largest government-led settlements in more than a decade.

That sure sounds impressive. But what does it mean?

Very little, if the substantial new rules that will come about as a direct result of the settlement aren’t enforced.

And let’s just say that enforcement – you know, that minor detail that really matters – has been sorely lacking in the administrations approach to the housing crises of the past 3 years.

In the case of this settlement, the new rules haven’t quite been finalized yet. And we have yet to see if there are any substantial penalties going forward. Or even what the penalties are.

*sigh*

Suffice it to say, a settlement with a big number attached at this point in the game means very little to those who are paying attention.

If this all brings to mind another big announcement, some 3 years ago, with another big number attached – in that case $50 billion – then we are on the same wavelength.

HAMP, the Home Affordable Modification Program, was going to be the cash-for-clunkers for homeowners, the wildfire to spread through the industry and turn things around.

Three years on, it’s a failure. Not because the IDEA of the mortgage modification program was a failure, but because in EXECUTION there were – and continue to be – countless errors and delays on the part of banks which have delayed and/or torpedoed countless modifications. Errors and delays which the administration could not, or would not, get straightened out.

So, what will it be this time around? True accountability or a lax slide back to status quo? Time will tell.

Will this be more of the same?

While there is always room for optimism, the president’s latest plan will do precious little to help those already on the verge of losing their homes.

To be fair, the solution isn’t entirely clear, at least not at the immediately level of federal mortgages. Between the FHA, Fannie and Freddie, the federal government already guarantees somewhere in the neighborhood of 90 percent of all U.S. mortgages.

In fact, the best solution to the housing mess may be one far removed from housing.

It’s jobs.

Getting people back to work is the single best way to improve the housing market.

That, of course, is equally easier to say than do. And to the president’s credit, it’s clear that his administration is at least focusing on that long-term goal.

And in the short-term? We’ll all keep an eye on the details as they emerge of this latest in a long line of proposed mortgage fixes .. but it’s hard to get optimistic.

People are starting to notice.

HAMP (the Home Affordable Modification Program) is still in the dog house. At this point, the effort should, by estimates that helped launch the program with much fanfare, have helped almost four million homeowners.

Take a guess at how many it has actually helped complete loan modifications? 1 million?

Nope, you’re still too high. Only a paltry 587,000 U.S. homeowners have managed to evoke the aid of HAMP to restructure their loans.

That leaves a lot of homeowners without a roof over their heads.

There’s not much time left to make this all look better before mid-term elections, which are shaping up as a doozy.

But wait! What is this? Reuters is reporting that there could be some kind of light at the end of the tunnel – for mortgage holders, that is.

The one place where everyone agrees relief could come is from some kind of mortgage reset courtesy of the GSEs. And now there are rumblings that such a plan could be in the works.

Color us skeptical.

When the new rules go into effect, unemployment benefits will no longer count as income for determining whether a person qualifies for a long-term reduction in their mortgage payments.

So for people with no income other than unemployment, there will be no loan modifications – the chief tool for preventing foreclosures.

“It’s ridiculous how impractical the guidelines … are,” said Al Ripley, an attorney with the N.C. Justice Center. “They truly do not address the needs of unemployed people.”

This program is the centerpiece of the $75billion federal effort launched in February 2009 to stem foreclosures. President Barack Obama has said HAMP – the Home Affordable Modification Program – would help 3million to 4million people avoid foreclosure through 2012.

But only about 170,000 homeowners received long-term modifications in the first year. The small numbers drive criticism that the U.S. Treasury program is flawed, and that lenders do a poor job of implementing it.

Read more: http://www.charlotteobserver.com/2010/04/11/1369820/foreclosure-program-falls-short.html#ixzz0kr3caTLS

That according to US REO and cited by an NAACP rep in a recent LA Times editorial. “The money should have gone to direct payments to homeowners, just like they did with the banks.”

Hard to argue with that logic (although US senators and even some authorized to dole out HAMP funds see it differently).

The nonprofit ProPublica has confirmed that only a tiny amount of the HAMP qualified mortgages have been given permanent status – and black Americans are underrepresented.

The changes reflect the continuing pressure that the administration is feeling to keep the HAMP program on track in the face of growing complaints that the bureaucracy and back-stabbing at the heart of the program are limiting its effectiveness.

Also under the revised rules, homeowners will have 30 days to appeal a rejection and during that time, lenders cannot conduct a foreclosure sale.

The idea is to set aside $1.5 billion in foreclosure initiatives for homeowners in Nevada, Michigan, Arizona, California and Florida. All have seen at least 20% declines in home values in the past year.

So far, so good. The $1.5 billion is part of Obama’s larger $50 billion Home Affordable Modification Program and will be used to create an “innovation fund” that state agencies can tap for various efforts to reduce foreclosures they deem “preventable.”

Some of those plans include helping homeowners going through unemployment, or simply underwater on their mortage, or even those with multiple mortgages and home equity lines of credit. In other words, people who are in a world of hurt and could use the money.

Here’s where the problem comes in. The treasury estimates there are at least 1.5 million homeowners in these five states that meet the broad criteria set out above. It further estimates the cost of modifying their loans at around $12,000 each.

Let’s do the math, shall we? At 12k a pop, $1.5 billion will only provide help for around 125,000 homeowners ($12,000 x 125,000 = $1.5 billion).

125,000 homeowners will surely appreciate the help, but that is a far cry from 1.5 million that are desperately in need of help.

To be fair, Obama has acknowledged that not everyone will be helped under this latest plan – nor is it necessarily advisable that everyone who took out a ridiculous loan should be allowed to get it modified.

“I’ve got to again repeat — government can’t stop every foreclosure,” said the President. “There’s not enough money in the Treasury to stop every foreclosure.”

Of course, let’s hope that the modifications actually make it to the people who need them most and not to simply irresponsible borrowers who helped create the collapse and have managed to find loopholes to avail themselves of the bailout.

We all heard about the government bailout. Bank Bail out financial institutions have. Automotive manufacturers bailout Have. Even the giants of the insurance company's bail-out. Ask, "Where is my bailout, I heard a lot of ordinary people?"

Finally, the government bail out the average Joe what are you doing! Home Bill 75 has stimulated billions of dollars in federal loans to face change and dispose of To help cover housing. This maeyina existing Fannie, Freddie Mac's loans with lower monthly payments can get a total reworking the landlord There are more leisurely. These modifications were completed to receive incentives of $ 1000.00 Loans granted approval. This bail out the millions of homeowners Money helps.

These fixed mortgage for the housing market To enhance their options to maintain their home by Is intended to help landlords. Really the best bail-out That's all. The landlord is required to qualify a natural Will experience financial difficulties. This increase in the cost or Income loss due to fault of their own means. It is not hard to meet these criteria have to suffer Some people in today's economy. Of course, other application instructions The government and banks do not have laid down.

This plan As well as a good opportunity to save your home is, But it also gave you your payment of the current $ 1000.00 per year for up to five years to pay incentives for principals Can save! The opportunity to save your home And, besides, you actually get a little bit in the future You can.

You, you make sure that all homework Before you access the loan. Find out all the details For changes in federal loans if you qualify visit. Compile all the information, you guide the application And if you've lined up together.

To stop foreclosure, click here to learn how to qualify for Obama’s loan modification.

Mortgage bailout plan who feels ripped from 100 million won Obama's paltry $ 50?

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part 2 – Obama Mortgage Plan Foreclosure help – Saxon Mortgage – Bierman, Geesing & Ward, LLC