As the housing market continues its slow and painful path to recovery, major banks have been forced to fork over billions in relief for troubled homeowners. The landmark $19 billion settlement between the Attorneys General of 49 states and five major banks and mortgage originators is on track, and while major names like Bank of America have provided more than $26 billion in relief on a gross basis, while states like California got $17 billion to date, only Ally Financial has managed to meet its obligations. The ghost of Angelo Mozilo and Countrywide will continue to spook major financials going forward as the housing crisis still weighs on their balance sheets.
As the housing market continues its slow and painful path to recovery, major banks have been forced to fork over billions in relief for troubled homeowners. The landmark $19 billion settlement between the Attorneys General of 49 states and five major banks and mortgage originators is on track, and while major names like Bank of America have provided more than $26 billion in relief on a gross basis, while states like California got $17 billion to date, only Ally Financial has managed to meet its obligations. The ghost of Angelo Mozilo and Countrywide will continue to spook major financials going forward as the housing crisis still weighs on their balance sheets.