David Dayen | Foreclosure Fraud Settlement Terms Laid Out, But Holdout AGs Not Signed On

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David Dayen | Foreclosure Fraud Settlement Terms Laid Out, But Holdout AGs Not Signed On

David Dayen | Foreclosure Fraud Settlement Terms Laid Out, But Holdout AGs Not Signed On

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By: David Dayen

When I started digging into whether this Monday meeting with HUD and DoJ officials to go over a proposal for a foreclosure fraud settlement was legitimate, I couldn’t find one state Attorney General who mattered actually committed to showing up. When I say AGs who “matter,” I mean the ones who have been critical of a settlement in the past. I mean the Justice Democrats. I mean Eric Schneiderman in New York, Beau Biden in Delaware, Martha Coakley in Massachusetts, Catherine Cortez Masto in Nevada, Kamala Harris in California, not to mention the AGs from Hawaii, New Hampshire, Missouri, Mississippi, Maryland, Kentucky, Minnesota, Oregon and Montana who showed up (either themselves or representatives) at the meeting in DC last week to discuss alternatives to a settlement. I mean them. They aren’t going to Chicago, by all accounts.

That doesn’t mean the negotiators aren’t trying to push a deal, of course. And Shahien Nasiripour reports that the terms of the deal have been set and will get circulated to the AGs for approval.

The proposed pact would potentially reduce mortgage balances and monthly payments by more than $25bn for distressed US homeowners, these five people said.

The tentative agreement still must be approved by all 50 state attorneys-general, and negotiators have previously missed proposed deadlines. Participants described the proposal terms as set, meaning the states will be asked either to agree to them or decline to participate.

The amount of potential aid is contingent on state participation and would decrease significantly if big states do not sign the agreement. New York and California are among several states that have voiced concerns about the terms of the proposed deal with Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial. New York and California are particularly concerned with the part of the deal that would absolve the banks of civil liability for allegedly illegal mortgage-related conduct.

California borrowers would be eligible to receive more than $10bn in aid if the state were to agree to the terms, according to several people involved in the talks.

But while Shahien, who has been pretty good on the reporting of this …

[FIRE DOG LAKE]

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2 Responses to “David Dayen | Foreclosure Fraud Settlement Terms Laid Out, But Holdout AGs Not Signed On”

  1. Rosetta says:

    “One million homeowners may get mortgage writedowns”?????
    Exactly WHO is going to write them down??????

  2. Vern says:

    Any settlement should also require those wretched foreclosure mills like Steven Baum and his Pillar Processing to pay millions of dollars in fines and restitution. Those so called “law firms” were the enablers. They dumped tens of thousands of robo-signed, fraudulent and inaccurate documents into the court systems and recroding offcies nationwide and facilitated the mess. They knoew better, but in their greed for easy money could not have cared less as most of the tactics they used were rubber-stamped approved. They should be forced to give back most of their illegal profits.

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