Rep. Jay Inslee
The negotiations between state attorneys general and the Obama administration to come to a settlement over the robo-signing scandal drag on, a year after the admitted forgeries by bank servicing employees on foreclosure documents became public knowledge, with
agreement still not at hand.
Nearly one year later, the AGs and the banks are at an impasse over how much civil liability the settlement will cover. Within the AG ranks, a growing number are pushing for a narrower settlement freeing their offices up to pursue separate claims of securitization, origination and marketing fraud. Meanwhile Republican AGs claim the pursuit already goes too far.
Into this mix, and with the backdrop of the growing Occupy Wall Street movement, the issue is now factoring in some campaigns.
In Washington state, Congressman Jay Inslee is making it an issue in his 2012 governor's race against current AG Rob McKenna, and elevating the issue nationally. Inslee has written to U.S. Attorney General Eric Holder, pressing for a full federal investigation of mortgage fraud before any settlement is made. From the letter:
As a former prosecuting attorney, I understand how important it is to fully investigate any alleged wrongdoing in order that those responsible may be prosecuted to the fullest extent of the law.
A full investigation is important for two reasons. First, we can’t fix what we can’t see. For years, banks and mortgage companies have been taking advantage of working families and investors. To respond we need to know everything they have done and punish those responsible. It is a sad commentary on our society that protestors standing up for American families in this mess get carted off to jail while individuals and companies have yet to be held accountable.
Second, to take the necessary steps to stave off yet another flood of foreclosures we need tens of billions more than what is reportedly being discussed as part of a settlement. Financial institutions got us into this mess, they should play the leading role in helping families get out of it.
However, it appears that current discussions are more focused on a quick resolution, a small amount of money, and blanket immunity for mortgage servicers. If these reports are incorrect I would recommend you immediately correct the record.
Let me be clear as to what I believe the American people expect and deserve out of any talks or possible settlement. Any settlement that gives servicers and/or banks blanket immunity from prosecution is unacceptable. Any settlement that short-circuits a thorough investigation into mortgage and foreclosure practices is unacceptable. And any settlement that does not create a substantial fund from which to assist homeowners is unacceptable.
Washington's AG McKenna is on the foreclosure fraud working group negotiating with the banks, so Inslee is definitely opening up the issue to put pressure on him, as well as the entire working group and Holder. That's what this petition he's created would do.