Can’t wait to see Bondi in FL jump into action when the banks break the terms of the settlement…
Mortgage deal would give states enforcement clout
(Reuters) – A proposed settlement to resolve mortgage abuses by top U.S. banks will give states broad authority to punish firms that mistreat borrowers in the future, according to documents seen by Reuters on Wednesday.
Under the settlement, which states are currently reviewing to decide whether they will join, the states and a separate “monitoring committee” will have the authority to go to court to enforce the terms and seek penalties of up to $5 million per violation.
A strong enforcement mechanism could help the states and the Obama administration sell the deal to the public, after left-leaning activist groups have questioned whether the negotiations were too lenient on the banks.
Negotiations between state and federal officials to resolve allegations of misconduct in servicing home loans have stretched into their second year.
The delay is partly due to some states trying to extract a bigger settlement from the banks and to reserve their ability to file more mortgage-related suits in the future.
However, the deal now looks imminent.
States have just a few more days to make a decision on whether they will sign on. And U.S. Housing and Urban Development Secretary Shaun Donovan said during a White House briefing on Wednesday that a final legal settlement will be reached “in the coming days.”
The settlement, expected to be filed as a consent judgment in federal court in Washington, D.C., will last for 3-1/2 years, according to documents laying out the pending deal’s enforcement terms.