New York and California Attorney Generals, Eric Schneiderman and Kamala Harris have agreed to sign the proposed settlement between U.S. states and some of the biggest mortgage lenders over foreclosure abuses. This brings the number of States to sign on to 40, and other hold out AG's from States such as Delaware and Nevada are expected to join in soon.
The following corporations (Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial) have agreed to a settlement of approximately 37 billion dollars for lowering homeowners' mortgage principal, refinancing, a reserve account, and payments direct to homeowners. As part of the negotiation, these corporations were asking for releases from further legal liability. As usual.
In the agreement, the settlement grants immunity from civil lawsuits brought by the attorneys general against the lenders regarding robo-signing cases.
California, New York Help Push Foreclosure Accord to Completion
California and New York, along with Florida, agreed to join more than 40 other states in a nationwide settlement 16 months in the making that seeks to end abusive bank foreclosure practices that followed the collapse of the housing bubble, a person familiar with the matter said.
The decision by New York Attorney General Eric Schneiderman and California Attorney General Kamala Harris ensures the settlement has the backing of two officials who had been among the most outspoken in pushing for changes to the deal. The deal may be worth as much as $39 billion, according to the person, who declined to be identified because the terms haven’t been made public.
“With California and New York signing on, it’s a huge deal,” said Kurt Eggert, a professor at Chapman University School of Law in California who has been following the talks. “California and New York were the biggest critics of this deal, so if they sign on, that’s a sign that this is a real deal. It’s not just a show.”
All 50 states announced 16 months ago that they were investigating bank foreclosure practices following disclosures that faulty documents were being used to seize homes. Officials from a group of state attorneys general offices and federal agencies, including the Justice Department, have since negotiated terms of a proposed settlement with Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Co. and Ally Financial Inc.
Things are beginning to look up, and it's about damn time. Occupy has changed the game, the rhetoric and the mood of the nation. Again. It's about damn time.