Mortgage settlement monitor wants to restore public trust

October 18, 2012

The monitor of the $25 billion national mortgage settlement is in the Valley today to talk about where the rights of homeowners fit in.

From Phoenix, KJZZ’s Steve Goldstein reports.

STEVE GOLDSTEIN: In February of this year, five of the largest banks in the U.S. agreed to a settlement with 49 state attorneys general to take care of concerns related to how those banks handled home loans during the mortgage crisis. The settlement will provide up to $25 billion for distressed homebuyers who signed on to it and direct payments to signing states and the federal government. Joseph Smith, the National Settlement Monitor, will be talking about the settlement and how it’s being implemented at ASU’s O’Connor College of Law today. Smith says the most important thing is to ease the minds of wary consumers.

JOSEPH SMITH: In many ways, the most important objective of the settlement—at least to me—is to restore public trust, trust in the financial system, mortgage system and our government. And I can only say that I hope trust can be restored by demonstrated and observed better treatment of people who are in distress.

GOLDSTEIN: Arizona, one of the states hit especially hard in the housing downturn, will receive one point three billion dollars in the settlement.

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