Deal may be close on foreclosure settlement
Deal may be close on foreclosure settlement
After a yearlong effort that has featured numerous false starts, federal and state officials aim to wrap up this week a multibillion-dollar agreement with five major banks to settle probes of alleged foreclosure abuses, The Wall Street Journal reported.
State attorneys general must indicate by the end of today whether they are signing on to the deal, according to a statement last Friday from Iowa Attorney General Tom Miller, who is leading the negotiations.
Government officials have been aiming for a deal valued at $25 billion in loan write-downs, refinancings and other homeowner assistance, as well as cash penalties, with Ally Financial Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.
Under the latest draft, about 1 million U.S. homeowners who are “underwater” on their mortgages — with principal exceeding the home’s value — could be eligible for as much as $20,000 in relief of principal owed, U.S. Housing and Urban Development Secretary Shaun Donovan said last week.
In return, mortgage servicers in states that agree to the deal would get immunity from future state servicing and originating claims, although homeowners could pursue claims against banks and states could still pursue criminal investigations, according to reports.
After a yearlong effort that has featured numerous false starts, federal and state officials aim to wrap up this week a multibillion-dollar agreement with five major banks to settle probes of alleged foreclosure abuses, The Wall Street Journal reported.
State attorneys general must indicate by the end of today whether they are signing on to the deal, according to a statement last Friday from Iowa Attorney General Tom Miller, who is leading the negotiations.
Government officials have been aiming for a deal valued at $25 billion in loan write-downs, refinancings and other homeowner assistance, as well as cash penalties, with Ally Financial Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.
Under the latest draft, about 1 million U.S. homeowners who are “underwater” on their mortgages — with principal exceeding the home’s value — could be eligible for as much as $20,000 in relief of principal owed, U.S. Housing and Urban Development Secretary Shaun Donovan said last week.
In return, mortgage servicers in states that agree to the deal would get immunity from future state servicing and originating claims, although homeowners could pursue claims against banks and states could still pursue criminal investigations, according to reports.
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