Bank Sold Your Loan? Mortgage Settlement May Deal You Out

Bank Sold Your Loan? Mortgage Settlement May Deal You Out

Under the terms of the historic $25 billion settlement announced last week, the country’s largest mortgage servicers must pay $17 billion to distressed borrowers in the form of loan modifications, mostly through principal write-downs.

Painted as long-awaited redress for bank misdeeds, the penalty is supposed to funnel relief to the segment of homeowners hit hardest by the housing bust: “underwater” borrowers at risk of default.

But while the agreement appears poised to offer loan modifications to at least some distressed homeowners, details of the deal that have been released so far suggest that the assistance is not only extremely limited in scope but also …

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