The $26 billion settlement reached by the federal government, most states and the nation's largest banks to compensate homeowners for abusive foreclosure practices is unlikely to end the housing crisis, analysts say. It could also lead to a new round of foreclosures, which would drive prices even lower.
Government officials have worked out a deal with the nation's five big banks to settle state and federal investigations of alleged foreclosure abuses. Banks would have to pay $5 billion in cash and another $20 billion in loan modifications under the terms of the deal.
Audie Cornish speaks with Kim Parker, Associate Director with Pew Social & Demographic Trends and lead study author about the new Pew report on record high youth unemployment statistics. The study found that negative trends in the labor market have hit 18-34-year-olds the hardest.
Officials have been pressing five banks to offer mortgage relief and some financial aid to homeowners who got crushed when the housing bubble burst or were caught up in the "robo-signing" scandal that sped up the foreclosure process.
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