Friday, January 27, 2012
Settlement with bank mobs seen near
They talk about this alot but this time there may be something to it. One of the big sticking points has almost been eliminated.
The settlement is worth $25 billion, a sum which will be distributed to homeowners who were wrongfully foreclosed on as well as those who remain underwater. In addition, banks could still face future legal action over 12 specific violations.Robosigning was the heart of most of the fraud and the nutcracker to get at the larger crimes. This may not be a great settlement despite the remaining criminal liabilities.
According to someone intimate with the negotiations, there will be no legal release of the banks with respect to:
- Criminal liability.
- Tax liability
- Fair lending, fair housing, or any other civil rights claim.
- Federal Housing Finance Agency or the GSEs [Fannie Mae and Freddie Mac]
- CFPB claims for the period after they came into existence in July 2011
- SEC claims
- National Credit Union Association Claims
- FDIC claims
- Federal Reserve Board claims
- MERS claims
In addition, the source said, there will be preservation of the vast majority of securitization claims including all claims regarding state pension funds as well as the vast majority of the origination fraud claims from HUD, the VA and the USDA.
According to Mike Lux, who originally reported the settlement for The Huffington Post, the release will be "almost entirely confined to robosigning cases" -- meaning that banks will likely not see further punishment from the states for foreclosure fraud. Robosigning fraud is perhaps the easiest type of misconduct for prosecutors to target.
Subscribe to Posts [Atom]
Post a Comment