There are tons of news on this subject recently,
The mortgage settlement of nation’s five largest mortgage lenders (Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Citibank (NYSE:C), and Ally Financial (NYSE:ALLY-B)) is more than a year in the making. On Monday, Donovan and Associate U.S. Attorney General Thomas Perrelli briefed Democratic and Republic state attorneys general on the outlines of a $25 billion settlement.
In exchange for between $20 billion to $25 billion in relief to distressed homeowners, the 5 banks will put behind them potential government lawsuits about improper foreclosures and abuses in originating and servicing the loans. It is reported that the settlement will come within weeks,
http://www.reuters.com/article/2012/01/18/us-usa-housing-donovan-idUSTRE80H1LI20120118
However, the flare of opposition comes as the Obama administration struggles to wrap up this settlement. The bank settlement falls short before tomorrow’s State of Union Speech,
http://www.baycitizen.org/housing/story/bay-area-politicos-foreclosure-falls/
http://www.thenation.com/blog/165806/obama-brink-settlement-big-banks-and-progressives-are-furious
What will we see in the future? Will this be dragged on and on forever? I think Obama administration does not want the delay since by resolving it before big Election Day will be another huge win for him. Then, how can this be resolved in a timely fashion? Raise the price tab somewhat, or significantly? Or no settlement at all, just kill all big 5 so that the opposition will be quiet. However, eventually who will compensate for the loss? …
It is very interesting to see what will happen in next few weeks. Stay tuned.
3 Responses to Settlement on BAC foreclosure practices?