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Tag Archives: Attorney General

Without California, AG Settlement May Be Reduced

While the attorneys general working toward a settlement with the nation's largest servicers may be able to strike a settlement without California, it may cost them. A deal that seemed likely imminent as of the end of October would have required $25 billion from the banks - $5 billion in cash penalties and $20 billion in refinancings and modifications. That $25 billion could be reduced to $18.5 billion if California refuses to take part in the settlement, and it could limit the amount of assistance provided to California homeowners.

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Judge Permits Delaware and New York to Intervene in BofA Settlement

A federal judge has ruled to allow the Delaware and New York attorneys general to pursue litigation in Bank of America's $8.5 billion settlement with mortgage investors. Bank of America reached the settlement agreement in June with Bank of New York Mellon, the trustee for the 530 mortgage-backed securities trusts in question. But the judge has ruled that there's more at stake than the financial interests of the few major investors involved in the settlement negotiations.

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California AG Subpoenas Fannie and Freddie

California Attorney General Kamala Harris reportedly sent subpoenas to Fannie Mae and Freddie Mac, requesting information about their servicing, foreclosure, and property leasing actions in the state. The attorney general's office also intends to investigate the GSEs' actions regarding purchases of ""toxic mortgages."" With one of the highest default rates in the nation, Harris has been actively seeking aid for California homeowners and has recently lobbied for increased principal reductions from Fannie and Freddie.

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Nevada AG Files Criminal Charges for Robo-Signing

Nevada Attorney General Catherine Cortez Masto has filed criminal charges against two title officers for alleged robo-signing. The defendants are employed by Lender Processing Services (LPS) and are allegedly responsible for tens of thousands of fraudulent documents that made their way through the Clark County Recorder's Office from 2005 to 2008. LPS says it cooperated with Masto's investigation and was assured earlier in the month that the company was not a target of the attorney general's inquiry.

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Ally Takes Exception to Settlement Proposal

Ally Financial's CEO Michael Carpenter told investors Wednesday that his company ""would not settle for the kind of numbers being bandied about"" as recompense for mishandled foreclosure paperwork. Ally's GMAC Mortgage was the first servicer to admit to robo-signing issues and affidavit errors related to foreclosure processing last fall. Analysts estimate the company could be on the hook for $2.5 billion of state attorneys general's $25 billion settlement proposal. Carpenter says it should be a ""small fraction"" of that amount.

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State Attorneys General and Servicers Set to Strike $25B Settlement

State attorneys general and the nation's five largest mortgage servicers could be within weeks of reaching a $25 billion agreement to settle allegations that foreclosures were improperly processed. Details of the settlement terms obtained by DSNews.com indicate that individual servicer penalties will be based on the number of foreclosures they've completed. Collectively, $5 billion would come in the form of cash fines and $20 billion would be satisfied with principal-reducing modifications and refinancing for underwater borrowers.

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Delaware AG Sues MERS

Delaware Attorney General Beau Biden filed suit Thursday against MERSCORP and its subsidiary, Mortgage Electronic Registration Systems (MERS). Biden charges the company with violating Delaware's Deceptive Trade Practices Act. He alleges MERS violated the act in three major ways: by maintaining inaccurate information and withholding information from borrowers; by filing foreclosures without the authority to do so; and by not enforcing its own rules. MERS says there is ""no merit"" to Biden's accusations.

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States and Servicers Consider New Proposal for Aiding Those Underwater

Help for underwater homeowners has moved from principal writedowns to refinancing in the settlement negotiations between state attorneys general and the nation's five largest mortgage servicers. According to a widely circulated report, the proposal made its way into the talks last week. Borrowers who are current on their mortgage payments but owe more than their home is worth would be able to refinance at today's lower rates. The main caveat is that the loan must be owned, not just serviced, by one of the five banks.

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JPMorgan Rebuffs Reports That AG Settlement Is Imminent

JPMorgan Chase used its third-quarter earnings call with investors Thursday to rein in expectations about when a mortgage servicing settlement might be reached with state officials. CEO Jamie Dimon described the settlement talks as ""getting bogged down"" because of the many varying demands of each of the state attorneys general. Dimon said he thinks it'd be good for everyone involved to come to an agreement and move on, but he was quick to add, only if the settlement is ""reasonable.""

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Massachusetts AG Readies Foreclosure Suits Against Major Servicers

With little faith that ongoing negotiations between state officials and major mortgage servicers will result in a fair and just settlement, Massachusetts Attorney General Martha Coakley signaled Wednesday that she will be taking her case to the courts. Coakley did not disclose which companies would be targeted, but cited servicers' failure to establish their right to initiate foreclosure and filings of false or misleading documents as the basis for the impending legal actions.

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