“But the bankers and government officials did not discuss the size of potential fines, nor did they address the mortgage firms’ push for release from legal liability for their unlawful actions in their treatment of borrowers and pursuit of home repossession. The nation’s largest lenders voluntarily halted home seizures last autumn after faulty document practices — like so-called “robo-signing” — came to light, erupting into a national scandal. Federal and state investigations began shortly afterward.”

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Obama Administration, State Officials Expected To Give Banks New Mortgage Terms As Some Question Pace Of Negotiations

WASHINGTON — The Obama administration and state officials are expected to offer the nation’s five largest mortgage firms updated terms next week in ongoing negotiations over a settlement regarding the firms’ faulty treatment of borrowers, according to three people with knowledge of the government plan.

As part of their discussions to settle months-long state and federal probes into shoddy mortgage practices and wrongful foreclosures, the new terms are expected to incorporate suggestions offered by the banks in response to an earlier term sheet circulated in early March by state and federal officials. Bankers said the original terms were too stiff; investors said they didn’t go far enough. Consumer advocates said they were a good start.

The new term sheet will mark another attempt to get bankers and policymakers on the same page regarding the treatment of borrowers who fall behind on their mortgage payments or default on their obligations. But it is not expected to detail any fines to be meted out in response to banks’ flawed practices, which include improper home seizures and other actions that broke federal and local laws.

Check out the rest at the Huffington Post here…

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