Friday, January 20, 2012

AG Negotiations with Banks Linger on; Settlement Possibly Imminent

After the estimations that the state attorneys general would reach a settlement with banks by Christmas failed to pan out, word today is the settlement is weeks away.
The negotiation talks between the state attorneys general and the nation’s five largest servicers are entering their second year, and a few attorneys general have already left the talks.

The banks and attorneys general are allegedly “very close” to a settlement, Reuters reported Wednesday, referencing remarks from HUD Secretary Shaun Donovan at a U.S. Conference of Mayors meeting.
The settlement currently on the table would assist about 1 million homeowners in obtaining principal reductions and would provide “direct compensation” to others, according to Reuters.
The settlement “would both fix the servicing problems, but also help over a million families around the country stay in their homes,” Donovan said, according to Reuters.
As settlement negotiations continue, a subset of 12 attorneys general reportedly met last week to discuss their own investigations into mortgage servicing and foreclosure practices, according to a Tuesday Bloomberg article.
California, New York, and Massachusetts attorneys general – all of whom left settlement negotiations to pursue their own investigations – were present.

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