The U.S. Justice Department, Department of Housing and Urban Development and state attorneys general today announced the agreement, which was more than 16 months in the making following a move by states to investigate bank foreclosure practices in 2010.

“We need to keep doing everything we can to help homeowners and our economy,” President Barack Obama said at the Eisenhower Executive Office Building in Washington, where he was joined by administration officials and attorneys general from some of the states. The “landmark” agreement will “begin to turn the page on an era of recklessness” that led to the housing bubble, he said.

Ally said to be Shopping Mortgage Unit

One of the financial institutions that are party to the reported settlement agreement with the attorneys general of the majority of the states is reportedly on the auction block. According to Bloomberg News, Ally Financial is talking with private equity firms about selling its mortgage unit, Residential Capital LCC , through a pre-package bankruptcy. Any sale of the company would be complicated by its recent financial history. The company was founded as General Motors Acceptance Corporation (GMAC…) ]]> http://affordable-financialservices.com/blog/2012/02/08/are-more-banks-on-the-move/feed/ 0 http://affordable-financialservices.com/blog/2012/01/31/new-government-plans/ http://affordable-financialservices.com/blog/2012/01/31/new-government-plans/#comments Tue, 31 Jan 2012 23:38:44 +0000 Brian http://affordable-financialservices.com/blog/?p=577 Private equity firms are jumping into distressed housing as the U.S. government plans to market 200,000 foreclosed homes as rentals to speed up the economic recovery.

The average rate for a 30-year fixed loan rose to 3.98 percent in the week ended today from 3.88 percent, the lowest in records dating to 1971, Freddie Mac said in a statement. The average 15-year rate increased to 3.24 percent from 3.17 percent, according to the McLean, Virginia-based mortgage- finance company.