The settlement agreement has an initiative of resolving all civil claims by federal government and five states. The aspects would include packaging, marketing, and sold residential mortgages loans before any financial crisis. The agreement would have to pay $4.5 billion in form of cash and $2.5 in total as consumer relief. Consumer relief will take various forms such as loan modification for homeowners in situations where the purchase value is higher than the market value. Also, the relief would be necessary for refinancing homeowners, and paying for a down payment and closing costs. The community would get support in investments and donations to help them progress forward. These funds will work a long way in financing low earning families in high-cost areas with affordable rental houses.
There are various ways in which you can know whether you are eligible for consumer relief settlement agreement. The agreement outlines the modifications and activities to engage in to become one of the beneficiaries. Determination is based on the firm’s credit and loan criteria about loans that modify and what is offered by reliefs. However, no one has the right to modify any specific loan irrespective of who they are in the chain. The firm should ensure they meet and provide relief to consumers efficiently by fulfilling the commitment of $2.5 billion. Consistency is required to ensure the commitments are met with the overall settlement agreement.
The settlement agreement fulfills the commitment undertaken to provide relief to a consumer in various forms. The benefits of the agreement are not mandatory to any citizen, but most people who are homeowners benefit from the funds. The eligibility is determined by an individual who is supposed to deliver a favorable solution and monitor compliance to ensure consumers get the necessary relief that is required. The monitor oversees and provides the $ 2.5 billion obligations in form of consumer relief. Also, they have the right to track the progress of the resources, inform the public, and ensure all the requirements outlined in the settlement agreement are not violated. The monitor does not have the authority to determine the relief for the consumer or its form. However, it is the primary role of the monitor to provide $ 4.5 billion in the form of cash payment to the respective body and the receiving government institutions.
The monitor operates with the rest of the experts in the activities to determine when they should fulfill consumer relief obligations as they are obligated by settlement agreement. These professionals are transparent and fully committed in their legal processes to provide members of the public with all the information that reflects to compliance. There are also quarterly reports that reflect the progress which meets the required obligations. In addition, the monitor is appointed under settlement act as an independent body with full capacity to determine whether the agreement is satisfying in providing consumer relief. If by any chance the monitor determines that the obligations were not completed, they are supposed to pay a difference in non-profit organizations that are ideal for house counseling, stabilization, preventing foreclosure and other programs. To ensure the pubic get confidence with the monitor, the role is undertaken in an open and transparent way.