AGs Weeks From Filing Foreclosure Settlement Documents
Yesterday we expressed concern because we have yet to see the formal documents behind last week’s landmark $25 billion settlement, and it seems few people actually have.
HousingWire reports, through an unnamed source, that federal prosecutors plan to file them in court by the end of the month.
But of course herein lies the problem: We’ve heard how much money each individual state is getting, Florida alone is set to receive about $8.4 billion alone, but until the documents are filed, but until all I’s are dotted and all T’s crossed, those numbers are always subject to change!
While Rich Andreano, a banking lawyer quoted in the article says he doesn’t expect any drastic changes to the numbers, we still need to see them for ourselves!
And will we really see these documents filed this month? How many deadlines associated with the settlement have come and gone without a hint of activity?
Will we see any additional surprises, like additional immunity for the banks? Let’s hope not.
Shaun Donovan, HUD Chief, Hopes Fannie Mae and Freddie Mac Will Write Down Mortgages
The problem with this headline is glaring. Donovan HOPES Fannie and Freddie will write down mortgages. Not he demands, not he insists, he hopes. Well I hope for world peace, doesn’t mean it will happen now does it?
Donovan told the Huffington Post that he thinks the people behind the two GSE’s will finally come on board the principal reduction train once they see the effects from last week’s settlement on the housing market. Donovan called their reluctance to engage in principal reduction, “quasi-religious”, which is the problem in a nutshell.
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