Wednesday, January 25, 2012
This is interesting:
A $25 billion settlement between the nation's major banks and U.S. states over deceptive foreclosure practices during the housing crisis is nearing completion.
How do we know it is really "over deceptive foreclosure practices"? Is it robo signing? Transfers of titles without legal possession of the real estate specified? What?
Five major banks — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial (formerly GMAC) — and U.S. states are "very close," Housing and Urban Development Secretary Shaun Donovan said Wednesday.
And the deal is "very close". Tell us more about what was said by whom, to do what en exchange for what.
Separately, two officials briefed on internal discussions say a proposed deal could be announced within weeks. Negotiators are finalizing a draft of the agreement, which must be reviewed by state attorneys general. Under the deal, banks would pay states and the federal government, which would fund programs to compensate homeowners.
Fraught with peril words, "internal discussions", "fund programs". Solyndra was a funded program, sort of.
The two officials asked to remain anonymous because they were not authorized to speak publicly about the deal.
Talks have been dragging on for more than a year between major U.S. banks and state attorneys general over fraudulent foreclosure practices that drove millions of Americans from their homes during the housing crisis.
And the housing crisis itself was caused by....what....where...whom?
In October 2010, major banks temporarily suspended foreclosures following revelations of widespread deceptive foreclosure practices by banks. That has backlogged millions of foreclosures that must be cleared before the housing market can fully recover.
"That has backlogged...must be cleared...before" recovery. This is an opinion. It may be correct. It might even be true. But cited without evidence, it remains an opinion. I trust no deals between HUD and banks I cannot see with my own eyes.
The settlement would only apply to privately held mortgages, not those held by government-controlled Fannie Mae or Freddie Mac. Fannie and Freddie own about half of all U.S. mortgages, roughly about 31 million U.S. home loans.
Individual states can opt out of the proposed deal. Some have disagreed over what terms to offer the banks.
There is more here unsaid than said.
In September, California announced it would not agree to a settlement over foreclosure abuses that state and federal officials have been working on for more than a year.
New York, Delaware, Nevada and Massachusetts, which sued five major banks earlier in December over deceptive foreclosure practices, have also argued that banks should not be protected from future civil liability.
And both sides have also fought over the amounts of money that should be placed in the reserve account for property owners who were improperly foreclosed upon. Many of the details of the deal, including a $25 billion cost for the banks, have been agreed upon, officials say.
I'd be happy for the most transparent administration in history to show up sometime soon. My guts suggest this is more payoffs and fundraising for someone.
Posted by Kerry at 7:07 AM