"HUD Secretary Shaun Donovan told the LA Times today that a settlement between top banks and state and federal regulators on foreclosure fraud would be inked in “a matter of weeks.” HUD has been pretty close to the settlement talks, so I don’t totally doubt him, though I’m wondering exactly how many Attorneys General they expect to sign on to a deal, with Republican AGs distancing themselves and Democratic AGs undertaking their own investigations. Interestingly, Tom Miller’s chief spokesman contradicted Donovan quickly after the LAT published, saying “While we certainly hope we can reach a settlement in a matter of weeks, we don’t know how long it will take.”
Donovan said flatly that the banks’ offer of $5 billion in penalties for robo-signing and other fraudulent practices was “unacceptable,” but made no attempt to give a more acceptable figure (regulators reportedly made a $25-$30 billion offer initially, and told banks last week they would be on the hook for $17 billion in civil lawsuits if they didn’t settle). And how could he offer a figure? There hasn’t been enough investigationto determine the extent of the abuses. Heck, Abigail Field did more investigation by herself into Bank of America’s faulty mortgage docs than probably anyone in the foreclosure fraud working group negotiating with the banks".............LINK
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