Thursday, March 1, 2012

How Will $26B Mortgage Settlement Impact People Saving for Retirement?

by Evan Bedard

(Source: Senator Bob Corker ) - WASHINGTON – In a letter to Housing and Urban Development Secretary Shaun Donovan, U.S. Senator Bob Corker, R-Tenn., a member of the Senate Banking committee, requested information regarding how the $26 billion settlement with banks over improper foreclosure practices would impact Americans’ retirement savings. Earlier this month, the nation’s five largest banks agreed to execute $20 billion in mortgage relief and provide $5 billion in payments to states as restitution for failing to comply with filing regulations when foreclosing on homeowners who were not making their mortgage payments. Investors have warned the mortgage relief will be borne in part by pension and 401k plans invested in mortgage securities that will lose value when banks reduce principal on the underlying home loans.

Read more: http://www.loansafe.org/corker-to-donovan-how-will-26b-mortgage-settlement-impact-people-saving-for-retirement

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