Fraudclosure FAIL | State AGs Offer New Settlement Terms to Mortgage Servicers

“It makes sense for principal reduction to be off the table because it creates a tremendous number of legal and logistical obstacles that in the context of a complex settlement are obviously difficult and distracting,”


State AGs Offer New Settlement Terms to Mortgage Servicers

WASHINGTON — After months of stalemate, the state attorneys general have proposed new terms to the top five mortgage servicers that drop some controversial provisions of their first attempt at a settlement, including a push to force banks to reduce principal on thousands of mortgages.

The new offer, which was expected to be discussed at a meeting between the two sides on Tuesday, moves them closer to a final agreement, but does not detail how much state AGs are seeking in penalties for servicing issues uncovered by federal and state regulators.

Banks have privately said that they will not agree to a fine above $10 billion — far below a discredited $20 billion figure floated in the press two months ago — arguing that regulators have not provided evidence that servicing problems led to wrongful foreclosures.

The AGs are considering using whatever money they receive from banks to start a “cash for keys” program to help troubled borrowers move out of their homes and speed the foreclosure process by providing them cash incentives to leave. The funds are also expected to be used to promote mortgage counseling and offer some forebearance to troubled homeowners.

While banks have not agreed to the new terms, they do appear much more beneficial than an offer made in February, which demanded sweeping changes across the servicing industry, including principal reductions. By dropping that requirement, banks have already scored a key victory, observers said.

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79 Responses to “Fraudclosure FAIL | State AGs Offer New Settlement Terms to Mortgage Servicers”
  1. The Attorneys General just need to drop it all….they are just running in circles…doing shit. Pack up the note pads and stay in their states. Drop that idea of they were for the homeowners…..that was a complete bullshit lie….if not…something would have been done by now and good results given to the homeowners. Since it didn’t happen…..forget it now….they have proved one thing….they are certainly on the other side of the fence….certainly not law enforcement quality……Pat Bondi….forget it….you need to go back and get some book learning on Law Enforcement… have no quality for being Attorney General for the State of Florida. …you have no leadership…you are a follower…..WHO paid for your votes?????? Out of 50 AG’s….THIS IS DISGUSTING……IT IS BAD WHEN THE GUY ON THE STREET KNOWS MORE OF WHAT NEEDS TO BE DONE THAN 50 BIG WIGS PLAYING THE ROLE……YOU FOUND FRAUD….WHY WAS NO ACTION DONE LIKE GETTING THE REST OF THE ‘ GANG ‘ INVOLVED IN THE FRAUD END OF THIS MASSIVE CRIME…..A DELIBERATE PONZI SCHEME…A SCAM…UNDERSTAND?????? Use a voice…involve the criminal investigators of the government…..or is there fear in dark shadows to scare all 50 of the AG’s ????????? Answer the e-mails you receive…and not with a generic one either….that is what I got in return from you….No thanks…I asked you questions…and got nothing in return. You are batting zero so far….not good.

    • Tim Bryant says:

      Although you must say, she had a good Foreclosure Fraud presentation. Erin Cullaro must have shown her the ropes….LOL

    • Ronald Williams says:

      Right on. My attorney general responded with my complaint (fraud attempted foreclosure with document proof) being sent to an investigator who will get back with me if he sees a violation. They are supposed to be the top law enforcement officers of their state. Yet they act like lawyers in a back room begging for a deal

    • Tim Bryant says:

      You are correct. All this is, is a pre-election strong-arm for campaign contributions. MOST of the AGs could care less about their citizens. If they did, this would have been taken care of 2 years ago. Nobody has any belief that they are doing it on a good faith basis for their constituents.

  2. They keep dragging it so they can water down more more until is worth less, that is their strategy

  3. Bobbi Swann says:

    For those Floridians concerned, I found AG Pam Bondi’s personal email address:

    Cannot seem to locate the one for the AG’s office….it will probably go into her spam account but it’s worth a try. I am composing a letter now to mail her that I will also send to her personal email.

  4. Nancy Coxall says:

    For the banks to say they will not accept a penalty of more than $10 million dollars, is a perfect example of who is in control of the entire Country….Not to mention, they put this in print for everyone to read.

    We the people, are not involved in any solution. The banks are being considered for less punishment and the banks will decide what and how much the penalty will be.

    It is time to take matters in our own hands before there is no hope for we who have lost our homes to receive restitution.


    • l vent says:

      The banks DO NOT own this country. They own alot of corruption and alot of fake debt they created. They are criminals along with Wall Street and the Federal Reserve.They all need to be tied to the whipping post and forced to pay for the robbery of OUR WEALTH THEY STOLE IN THE MANUFACTURED FINANCIAL CRASH OF O8. GO TO YOU TUBE AND SEARCH FOR THE VIDEO ENTITLED; CNBC ILLUMINATI CRASHES STOCK MARKET. THAT CRASH WAS A GIANT INSIDER TRADING SCHEME AND THAT IS WHEN THEY STOLE OUR WEALTH AND HID IT OVERSEAS. CNBC confirmed this TRUTH today.

      • anthony says:

        Start taping the conversations with the banks, do not trust them with anything

  5. l vent says:

    Larry Kudlow on CNBC just psed the question to a guest, could this insider trading scandal be the reason for the FINANCIAL MELTDOWN in 08? The guest replied this was a part of it, GREED PLAYED A HUGE ROLE IN THE FINANCIAL MELTDOWN. RESCIND THOSE ILLEGAL, FRAUDULENT MORTGAGE CONTRACTS!!! THEY CANCELLED THEMSELVES OUT!! FRAUD IN THE CONTRACT, KILLS THE CONTRACT.

    • I vent…you are right…..FRAUD IN A CONTRACT..VOIDS THE CONTRACT……I vent..DID YOU SAY YOU WERE RUNNING FOR OFFICE ???? They say government needs alot more woman and less men… run and function smoother….. ‘ Inside Job ‘ even mention about all men in this shit massive fraud….Now don’t get me wrong… are fine in general…….just they should be scrubbing floors and cleaning house and cooking dinner……and we run the country with maybe a few men to run errands…..LOL…Oh my…..there has to be an answer to all this…..mine might not be the best….but they say when all is going wrong..just reverse it and do the opposite ….they say that is good philosophy. So men don’t get mad as I am only stating what I learned in a book…..

      • l vent says:

        It is definitley an uneven playing field Marilyn, as it always has been. It is time for a massive change in America. The many who have proven themselves corrupt and therefore useless, need to go away penisonless and no longer be allowed to hold a job in Government. All of the crooks who helped put us all here must be fined and held accountable. Lobbyists should be outlawed along with Government employees such as bank CEO’s and Multinational Corporations who act as banks like GE, GOLDMAN SUCKS AND AIG,that recieve huge paychecks and bonuses that are largely coming from the tax-payers of this country. They got bailed out by tax-payers and had the nerve to award themselves huge bonuses for INTENTIONALLY COLLAPSING THE STOCK MARKET with the criminal act of insider trading. All of these criminals dumped stocks and cashed in and stole everything not nailed down, and left the American people holding the bag, and then stole more in the bailouts and at the FED DISCOUNT WINDOW. They are all treated and act like GSE’s but call themselves private? Here is some more outrageous proof that the banks act as one sleazy foreign multinational bank:

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