Fraudclosure Settlement | Banks Demand The Consumer Financial Protection Bureau Relinquish Rights to Sue Over “Flawed” Mortgage Originations

Banks Press CFPB in Talks

Banks are demanding that the Consumer Financial Protection Bureau relinquish the right to sue over certain flawed mortgage originations, in exchange for their participation in a proposed multibillion-dollar settlement of alleged foreclosure abuses.

The banks say their inability to secure a sufficiently broad release from the new bureau, which was sidelined in earlier discussions as it launched, would be a deal breaker. The five biggest U.S. mortgage banks, state attorneys general and Obama administration officials are pushing to finalize a deal before the end of the year that would be worth $19 billion or more.

The development is the latest potential roadblock for the settlement effort. Throughout the nearly yearlong negotiations, banks have consistently sought extensive legal releases, while states and federal officials have resisted. In recent weeks, the banks have raised concerns that the CFPB will resist releasing claims over mortgages that were originated before the bureau was chartered last year. A CFPB spokeswoman declined to comment.

Rest from the WSJ here…


12 Responses to “Fraudclosure Settlement | Banks Demand The Consumer Financial Protection Bureau Relinquish Rights to Sue Over “Flawed” Mortgage Originations”
  1. readdocs says:

    More discouraging news, the true amount of homes sold since 2007 is expected to be lowered, the report
    comes out in the next couple of days. What is really being admitted is the numbers were padded, just like
    appraisals. This means it will affect the value of all homes. They’re saying it won’t affect prices….BS!

    • lvent says:

      readdocs, I heard that today on CNBC…they are a cabal of liars…! The homes were never worth the bubble price and they knew it…Those prices were driven by a fraudulent business model that could only sustain itself until they were so over their limit in collateral fraud they couldn’t find enough victims to use in order to keep the Ponzi Scheme Securitization chain running…The homes in my subdivision are now selling for about $80,000.00 less than what we paid for them in 1992 and the homes are taking 2-3 years to sell..They are selling for less than half of the bubble price…for example….a house such as mine that refied at $550,000.00 but originally cost about $300,000.00 is now bringing about $220,000.00 but the property taxes remain based on the bubble price, they Cook County Assessor says my home is now worth $80,000.00 less than the bubble price…they have my home value estimated at about $450,000.00…It is all way out of control! There is no way my home would ever fetch that kind of money…You could buy a newly built home for less than my 20 year old home that now needs work..This is the scam of the century!

  2. lvent says:

    Of course they want to relinquish our rights to see for the ORIGINATION FRAUD…that would allow them to be cleared of all criminal liability…but, if you look a bit deeper as in my case, it was the TITLE COMPANY that committed the ORIGINATION FRAUD…

  3. Have you seen the report on how many children are homeless now up 38 percent in two years. Staggering and this is how they protect the consumers? or are they going to send food and money to our homeless camps and are the families double and tripled up in homes and garages on this count. do the children claim to be homeless if they are living in garages and basements of their families homes?

    • My Grandchildren think my home is their home and they are right! However they dont know it is my home. Two of them have asked my why oI am visiting their house? I just work all day and come home to sleep and they think I am visiting. Living in my remodeled garage we remodeled out of an emergency for them and my finished daylight basement and using some of my bedrooms. I dont even eat at home very often it is to crowded and I get home late and leave early..

    • lvent says:

      All of my adult children live at home…my two oldest had to move back home because we lost our family business…they both have jobs but these jobs are barely above minimum wage and do not pay enough money to afford rent and utitlites, cell phones,etc..You know, it takes money to live in the real world, not peanuts…Apartment rents are 700+ in our area for a one bedroom…My mother always told me that you have to make in one week what your rent and bills are or you won’t make it…They don’t bring home near that money……The pay at one of these lousy paying jobs is not keeping up with the cost of living at all…and if you have student loans to pay or a car payment, forget about it……!

  4. indio007 says:

    Trial balloon 2… Kind of funny how the amount of the settlement keeps going down but the waiver of liability expands.

  5. Kathleen Burt says:

    No wonder several AGs have pulled out. We knew they were up to something, we just didn’t know what!

  6. Ron Moss says:

    Ill be they can’t even pound sand

  7. Floyd Bernsen says:

    Save the Banksters! You can’t sue us, we’re God! Save the rich, f$%k the poor!

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