prevent banks from shifting ANY mortgage abuse settlement penalties or costs to taxpayers or customers

US taxpayers will subsidize the $40bn settlement owed by banks over allegations of systematic abuse of borrowers in improper home seizures. An agreement clause allows banks to count future loan modifications made under a 2009 foreclosure-prevention initiative towards their restructuring obligations for the new settlement. The existing $30bn Home Affordable Modification Program (HAMP), provides taxpayer funds as an incentive to banks, third party investors and troubled borrowers to arrange loan modifications. State officials involved in the talks had had misgivings about allowing the banks to use taxpayer- financed loan restructurings as part of the settlement. State negotiators wanted the banks to modify mortgages using HAMP standards (seen as borrower-friendly).
NO TAXPAYER SUBSIDIES!