Mortgage Fraud Banks to get a Bye.... What do you think about the proposed Settlement ?

[cbelt3]

http://www.npr.org/2012/02/08/146585967/...settlement

"A year ago, banks admitted to abusing the foreclosure process — using fake signatures to power through foreclosure documents — a practice known as robo-signing. Now, five major banks and more than 40 state attorneys general have agreed in principle to a broad settlement that they say will help homeowners.

But some states, including high-foreclosure states like California and Nevada, have been holding out and negotiating for a better deal. They're concerned that the agreement wouldn't help consumers enough, and banks would be immune from future lawsuits. Late Wednesday, there were wire-service reports that the holdout states were close to a settlement deal that could be announced as early as Thursday."

CNN says Cali and NY caved
http://money.cnn.com/2012/02/08/news/eco...topstories&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29

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What I find egregiously annoying is that these financial firms have already written down a majority of this debt as 'lost'. But are still trying to collect on it. And continuing to destroy 'their' assets as a result. And are continuing to make money hand over fist because they're 'borrowing' it at damn near no cost from the Fed, and loaning it out for more money.

It's like watching a drawn out death scene, but it's American cities and towns that are dying. Right now I could buy a foreclosed house near where I work for $6,000. It had a mortgage of $60,000 two years ago. This is horrible.

[Gutenberg]

Where does CNN say that California and New York "caved?" Can you show me that in the story please?

The job of attorneys general is to negotiate the best deal they can for their clients, the states. If New York and California went it alone in suits against the banks, it would take years and millions of dollars that could be better spent elsewhere in a recession.

I think your beef is with the Fed, not the attorneys general of the states. But if the Fed raised the short-term prime, it would be passed along to the customers, us the borrowers. That's how banking works. The banks lend money at a profit. Nothing new there.

[michaelb]

I haven't heard any opinions for those around here doing that work or from the national experts that we trust. So it is hard to know at this point. The issues are enormously complex. The situation was a mess before; the lawsuit helped slow that down and will change the dynamic going forward. Unfortunately the court system(s) looks at each case on its own and has the result of dragging out the overall crisis. So I don't think we can realistically look to an end to this for years and years.

[robfilms]

since so many of the banking laws are tied to state banking commissions, it is up to the attorney generals of the affected states to wrangle the best deal possible.

i find it so very disingenuous, when some complain that a "deal" is struck then there must of been some unforeseen hand manipulating the players.

if the president and his administration puts pressure to make a deal, then its another "sure-fire sign" of the federal government in our lives-creaping socialism.

if the president and his administration doesn't put pressure on the parties involved to make a deal, then its another "sure-fire sign" of the federal government being inefficient and out of touch with localities.

gee, i guess for some that fact that this president and his administration ferreted out the abuses, made "robo-signing" a shameful act rather than business as usual, and now is attempting to find some form of a solution, doesn't sit well for those who can never see anything positive about the past 37 months.

ymmv

be well.

rob

[Spock]

I'm not surprised that the Florida AG went along with this deal. The stench from her firing the two most successful lawyers in her department investigating mortgage fraud lingers on.