States To Decide On Mortgage Lender Settlement

crininal bankers robo signingIt remains to be seen whether the States Attorneys General will accept the Big Bank’s 25 Billion dollar settlement proposal to make the “robo-signing” foreclosure scandal go away.

If it is accepted, it will only apply to privately held mortgages issued between 2008 and 2011, not mortgages held by Fannie Mae or Freddie Mac. Fannie and Freddie own about half of all U.S. mortgages or about 31 million home loans.

Ohio Democrat Senator, Sherrod Brown, said “Wall Street again is trying to pass the buck. Instead of criminal prosecutions, we’re talking about something that’s not more than a slap on the wrist.”

California Attorney General, Kamala D. Harris has been holding out for a settlement that includes her ability to prosecute lenders. California has the greatest number of people who lost their homes to foreclosure since the financial disaster struck. Ms. Harris said on Monday that “her ability to go after potential wrongdoing by mortgage lenders remains a key lens through which she will evaluate any proposal.”

You can read more details about the proposed settlement here:

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