Settlement

The rate of new foreclosure filings in Maryland far exceeded any other state's this spring, a spike caused in large part by the national robo-signing legal settlement that unleashed a flood of new cases. Almost 20 in every 1,000 home loans in Maryland - twice the national average - were drawn into the foreclosure process during April, May and June, according to survey data released Thursday by the Washington-based Mortgage Bankers Association. "If you look at what's going on in foreclosure starts, Maryland now has exceeded Florida, has exceeded Georgia - some of the states that have been up there at the top in terms of the percent of loans on which foreclosure actions have started," said Jay Brinkmann, the trade group's chief economist.

The city's spending panel on Wednesday voted down a $150,000 settlement for the family of a Baltimore teen whom police left shoeless in Howard County - a rare move that came after MayorStephanie Rawlings-Blakeobjected to the deal. "In this case two officers were found guilty of misconduct while in office," Rawlings-Blake said, arguing that taxpayers shouldn't foot the bill for the officers' actions. "Police officers who detained and transported a juvenile outside of the city, leaving him deserted in a wooded area without shoes and socks, are not acting in the scope of their employment.

An administrative law judge offered the parties in the dispute between the Howard County school board and board member Allen Dyer a chance to resolve the matter, but after nearly three hours of closed-door discussions Thursday the sides failed to reach a settlement. The case got under way in May, after the county school board requested last year that the Maryland State Board of Education remove Dyer, accusing him of bullying board members and central office staff and breaching confidentiality requirements.

Baltimore's effort to recover millions of dollars in lost revenue stemming from the wave of home foreclosures that followed the collapse of the housing market in 2007 was vindicated Thursday when Wells Fargo Bank, the nation's largest mortgage lender, agreed to pay at least $175 million to settle claims that it discriminated against African-American and Hispanic borrowers by steering them into high-cost, subprime mortgage loans. Baltimore will receive $7.5 million, and seven other communities - Chicago, Cleveland, Los Angeles, New York, Philadelphia, the San Francisco Bay Area and Washington - will benefit as well The Justice Department, which announced the agreement, said it is the second largest fair-lending settlement in its history.

Maryland Attorney General Douglas F. Gansler is teaming up with St. Ambrose Housing Aid Center to give homeowners information about help tapping into available mortgage relief and preventing foreclosure. The workshop, one in a series, is scheduled for 10 a.m. Saturday at St. Matthew Catholic Church, 5401 Loch Raven Blvd. Individuals who borrowed home loans through the country's five largest mortgage lenders -- Ally/GMAC, Bank of America/Countrywide, Citi, JPMorgan Chase & Co./Washington Mutual or Wells Fargo/Wachovia -- may qualify for relief.

About 1,000 Baltimore-area residents are expected to receive thousands of dollars each under a landmark $175 million settlement between the U.S. Department of Justice and Wells Fargo over accusations of discriminatory lending practices. Under the terms of the deal announced Thursday, Wells Fargo also will provide $7.5 million to the city of Baltimore, which federal officials credited with first raising issues of discrimination related to bank's subprime mortgages. The city alleged Wells Fargo steered minorities into subprime loans, gave them less favorable rates than white borrowers and foreclosed on hundreds of Baltimore homes, creating blight and higher public safety costs.

Maryland's District Court has tossed out nearly 3,600 debt-collection cases against state residents — with about $7.8 million in claims — as a result of a settlement with regulators over alleged violations. District Court Chief Judge Ben C. Clyburn said in a statement Wednesday that the cases, brought by sister companies LVNV and Resurgent Capital Services, are eligible to be filed again later because they were dismissed without prejudice. LVNV buys consumer debts while Resurgent tries to collect.

Homeowners hoping to see benefits from a national mortgage settlement — and others struggling with their payments — can attend a workshop in Baltimore Tuesday for information and assistance. The Maryland attorney general's office said the event will be held from 7 p.m. to 9 p.m. at St. Anthony of Padua Church, 4414 Frankford Ave. Nonprofit housing counselors and others who work with distressed borrowers will be on hand. The settlement, with the country's five largest mortgage servicers, was over allegations of widespread foreclosure and mortgage-servicing abuses.

An African-American couple whose newly built Charles County neighborhood was targeted in a racially motivated arson in 2004 has settled a federal lawsuit with the security company hired to protect the development, according to the couple's attorneys. Terms of the deal with Security Services of America, a subsidiary of ABM Industries Inc. that employed one of the men convicted in the case, were undisclosed. Messages left with the security company and its lawyers were not returned Thursday.