Obama Cuts Off JPMorgan, BofA and Wells Fargo From Receiving Millions in Fees From Huge Foreclosure Program
JPMorgan , Wells Fargo and Bank of America have been banned from receiving payments from the Obama administration tied to Obama's huge foreclosure prevention program, until they make "substantial improvements" to their performance in the initiative according to the Washington Post.
Mortgage services can earn up to and over $1,000 for "each loan they permanently modify" through the Making Home Affordable Program. Those three banks earned $24 million in fees through the program in May, for example.
Now, until they start improving, they won't be able to earn those fees. That being said, this isn't really about the money they're losing, but the general attitude towards these banks in Washington, which is shifting negatively.
The banks, which are three of the country's biggest mortgage servicers, reportedly "failed to meet basic program requirements," like reaching out properly to borrowers so they're being cut off from the program until they improve.
Originally the program was intended to prevent millions of foreclosures. In fact, so far it has only stalled about 700,000 according to the Post.
This story originally appeared on Business Insider
Read more from Business Insider:
Questions? Comments? Email us atNetNet@cnbc.com
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC