Bloomberg | Bank Foreclosure Deal Said to Be Held Up Over Liability Releases


Bank Foreclosure Deal Said to Be Held Up Over Liability Releases

July 22 (Bloomberg) — A push by U.S. banks to win broad liability releases has become one of the main obstacles in talks to resolve a nationwide probe of mortgage-servicing and foreclosure practices, two people briefed on the matter said.

The mortgage servicers want protection from additional state and federal claims over their mortgage practices as part of reaching a settlement that may exceed $20 billion, according to the people, who declined to be named because the talks are private. The banks are seeking releases that go beyond servicing of mortgages to include lending and securitization of loans, one of the people said.

That effort has encountered resistance from at least two states. Delaware Attorney General Beau Biden and New York Attorney General Eric Schneiderman, who are investigating the bundling of mortgage loans into securities, don’t want their probes blocked by a broad settlement of liability.

Biden said he has “strong reservations” about a deal that provides releases related to practices such as securitization and lending, because servicing is the focus of the nationwide settlement talks.

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16 Responses to “Bloomberg | Bank Foreclosure Deal Said to Be Held Up Over Liability Releases”
  1. Anonymous says:

    I feel so discouraged, as it is obvious to me that our State and Federal Government are co-conspirators with the banks. We are lambs to the slaughter, surrounded by greed, corruption and power by those we elected.
    I’ve written to Governor Bev Perdue several times, and not so much as a canned form letter returned to me. I complained to Perdue’s Commission of Banks and even sent them copies of the forged and fraudulent. They forwarded it on to GMAC and GMAC responded back, without addressing the forgeries or fraud; and that was good enough to the N.C. Commissioner of Banks, lol.

    The letter says “NCCOB is charged with the duty to license, examine and supervise financial service firms under its jurisdiction and to enforce state laws applicable to financial service firms.” I assume that to mean that service firms such as GMAC aka Ally Financial, INC. deserve to remain licensed in the State of North Carolina because fraud and forgeries by “them” are not against the law in N.C.

  2. BB says:

    Pretty obvious the banks are trying to but their way out of this one. What’s easier a few billion or admit all of the fraud that they have committed.



    I have been here before – it was called the Savings and Loan crisis. I don’t understand why there are so few of us around anymore who remember, and why so many are in denial. There are only two possible outcomes.

    A deal is cut where the “Banks” are forgiven. The agreement will say that they are not liable and that any and all real estate transactions prior to the date of the law are deemed valid. If not, we have economic and political chaos. It WILL be unconstitutional.

    There will be a great public outcry.

    Lawsuits will be filed that will last 25 years. In 25 years anyone who cared will be dead or have forgotten.

    The people revolt, and everything collaspses. We start over. What we need is the strongest of leaders. Even perhaps a “benevolent dictator” for a while (Bill Gates, Warren Buffet, and Charlie Munger, where are you?). We had those leaders in the past who did the right thing – period. Then they let the “lawyers” justify their actions. As one former Speaker of The House who took a vote said: “The Nayes are louder, but the Ayes have it”. No real leaders seem to be there now – but we will see. Perhaps, the President will raise the debt ceiling by announcing it and then let someone find the legal justification for his doing it (i.e. The 14th Amendment).

    This will NOT be fixed in our generation. However, the next and the one after will do it unless we have some type of major extinction event (anyone notice the historic weather, volcanoes, tsunamis, hurricanes, etc.?)

    The younger generation is better than we are. Less materialistic, more honest, and good hearted.

    There are only 3 types of thinking these days:

    Let the large corporations own and run things. They are smarter than the average citizen. After all, even the poorest in our nation is rich compared to the poorest in most third world countries. (They have a point). However, the People don’t look at it that way. The poor just look at the disparity between the rich and the poor and history teach us when it gets to great it leads to revolt. We seem to be there.

    Have government leaders elected by the people run things. They are objective and will be better at doing what is in the best interests of the majority of People. (The ultimate extreme of this is Socialism where the government not only runs things but owns them).

    “Cognitive Dissonance” is when the human mind can’t process something so people go into denial and ignore it. That is the majority these days.


  4. Ron Moss says:

    Duetsche Bank was a full partner with Adolf Hitler as I understand.

  5. BB says:

    No doubt the banks want broad protection. They are acutely aware of the potential DEEP hole they could fall into.

  6. Fury says:

    i pray more AGs will stand up for the crime victims like AG Biden and Schneiderman.

    where is kamala harris?
    where are the others?

  7. Readdocs says:

    There is no link to read the rest of the article.

  8. Anonymous says:

    And everyone get on the phones with your AG’s !!!!

  9. Anonymous says:

    I’m thinking now we will have to amend all our pending lawsuits to include The United States of America as defendents. What they are attempting to do is a violation of the law and our constitutional property rights.

    So let the lawsuits continue.

    • Tee says:

      They will get what they want……the banks will win. Ive stopped paying my mortgage and started saving and hired a lawyer to fight as long as possible. I had a phantom broker who doesn’t exist and he was somehow linked to Deutshe Bank because he left a direct number on his card that I recently called, and Deutshe bank answered and asked me how I got that number. I have a name that I will hold to myself for now, I feel those guys were just loading up those loan pools promising anything it took. Deutshe Bank…..a german bank in America calling itself a National Trust Co….what a joke.

    • talktotennessee says:

      AMEN! Anonymous: and it needs to be sooner rather than later.

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