There’s NO DEAL Between the Banks, Feds and States, So the AGs May Still Walk

I’m beginning to think that the last couple of days were April 1st in disguise. I mean, what a crazy practical joke our Federal Government and State AGs just tried to play! What a parade of press conferences, all touting a deal to trade some $25 billion in mostly more accurate accounting for some kind of release of origination, servicing and foreclosure fraud. But it turns out the deal’s not real.

Jeff Horowitz and Kate Davidson have the story for American Banker (bold always mine):

More than a day after the announcement of a mammoth national mortgage servicing settlement, the actual terms of the deal still aren’t public….That’s because a fully authorized, legally binding deal has not been inked yet.

Horowitz and Davidson then dryly note: ”The implication of this is hard to say.” They don’t choose to pronounce, because people they quoted disagreed about what the lack of a fully negotiated, executed contract meant. First Horowitz and Davidson quote the deal boosters:

Spokespersons for both the Iowa attorney general’s office and the Department of Justice both told American Banker that the actual settlement will not be made public until it is submitted to a court. A representative for the North Carolina attorney general downplayed the significance of the document’s non-final status, saying that the terms were already fixed.

And then Horowitz and Davidson inform us about what’s really going on:

Other sources who spoke with American Banker raised doubts that everything is yet in place. A person familiar with the mortgage servicing pact says that a settlement term sheet does not yet exist.

Really? So what do they have?

Find out here…