On Thursday banks received the much awaited proposal that many speculated would detail the potential ramifications for their part in the foreclosure and robo-signing mess.
According to various reports, the proposal could force banks to reduce principal loan balances for delinquent or underwater borrowers, or pay a multi-billion dollar fine.
But amid much speculation, missing from the proposal is an actual number amount that banks might have to pay to help remedy the problem, or possible penalties they might face for their conduct.
Instead, according to the Wall Street Journal, the proposal outlines a code of conduct that banks will be held to when dealing with troubled borrowers.
Though the proposal included insight from several government agencies and attorneys general, it did not include input from the Office of the Comptroller of the Currency The office is rumored to be against strict regulations that the other agencies are rumored to be advocating for, including a fine of more than $20 billion.
According to a recent report to a Senate committee, Acting Comptroller of the Currency John Walsh said even though banks may not have followed procedure when foreclosing on homeowners, the foreclosures were legal and very few homeowners were wrongly forced from their homes.
""A small number of foreclosure sales should not have proceeded because of an intervening event or condition, such as the borrower Ã¢â‚¬Â¦ filing bankruptcy shortly before the foreclosure action or being approved for a trial period modification,"" he said.
Reports have also surfaced that banks are pushing back against proposed mandatory write-downs, claiming that such a practice could invite fraud. Final negotiations between banks and legislators are expected to take place in Washington, D.C. in the coming weeks.