Deutsche Bank Mortgage Settlement Provides Loan Modifications, Homeowner Assistance
Deutsche Bank has reached a settlement with the U.S. Department of Justice for alleged packaging of toxic mortgages into securities it sold to investors, precipitating the housing crash.
Although the Department of Justice was seeking $14 billion in relief, the total amount will be $7.2 billion. Of this, $3.1 billion will be a fine, and $4.1 billion will be provided in the form of direct relief to homeowners.
Much of the relief will be provided in the form of loan modifications for homeowners struggling to keep up with their mortgages. Under past settlements, many banks have provided principal reductions and/or interest rate reductions to lower homeowners’ monthly mortgage payments.
This may be especially helpful to some homeowners, because the Home Affordable Modification Program (HAMP) ends at the end of December 2016.
You can read more about the settlement here in an article from the New York Times: Deutsche Bank to Settle Mortgage Inquiry for $7.2 Billion
Deutsche Bank’s own press release is here: Deutsche Bank agrees on settlement in principle with the DoJ regarding RMBS
Culik Law has litigated against Deutsche Bank in numerous lawsuits related to mortgages, foreclosures, and loan modification misconduct.
If you are struggling with your mortgage, contact Culik Law to see if we can help.