White House, big banks close to foreclosure fraud settlement

By Andrew Jones
Saturday, January 28, 2012 14:14 EDT
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A foreclosed home. Image via AFP.
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The White House, state attorney generals, and the nation’s big banks are reportedly close to a $25 billion settlement on allegations on foreclosure fraud, according to the Huffington Post.

The settlement would be based on homeowners who were either illegally foreclosed on or underwater on their mortgages. Those cases would be almost tied to “robosigning” where banks would not face another lawsuit from states for foreclosure.

However, further legal action from the federal level on banks could still occur after the $25 billion settlement. In the reported deal, banks were not released from facing future charges for 12 violations, including criminal liability, tax liability, and fair lending claims.

With banks not exempt from additional punishment, New York Attorney General Eric Schneiderman placed his support for the settlement with the states Friday evening. It’s still unknown as to whether the banks or all 50 state attorney generals will sign off on the settlement.

Andrew Jones
Andrew Jones
Andrew Jones is a staff writer/reporter for Raw Story. Besides covering politics, he is also a freelance sports journalist, as well as a slam poetry and music artist. You can follow him on Twitter @sluggahjells.
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