Is The Immunity For Robosigning Story Real ??? - You Decide !!! - From The Financial Times [View all]

[WillyT]

Talks set out terms of US mortgage deal
By Shahien Nasiripour in Washington and Kara Scannell in New York - FinancialTimes
January 20, 2012 10:55 pm

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Banks and government negotiators have cleared a big hurdle in efforts to resolve allegations of widespread mortgage-related misdeeds, agreeing on terms for a settlement that are being circulated to the 50 US states for approval, state officials and a bank representative say. The proposed pact would potentially reduce mortgage balances and monthly payments by more than $25bn for distressed US homeowners, these five people said.

The tentative agreement still must be approved by all 50 state attorneys-general, and negotiators have previously missed proposed deadlines. Participants described the proposal terms as set, meaning the states will be asked either to agree to them or decline to participate.

The amount of potential aid is contingent on state participation and would decrease significantly if big states do not sign the agreement. New York and California are among several states that have voiced concerns about the terms of the proposed deal with Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial. New York and California are particularly concerned with the part of the deal that would absolve the banks of civil liability for allegedly illegal mortgage-related conduct. California borrowers would be eligible to receive more than $10bn in aid if the state were to agree to the terms, according to several people involved in the talks.

The US Department of Housing and Urban Development declined to comment. Members of the Obama administration and a small group of state officials who negotiated the settlement terms are set to pitch the deal to Democratic state attorneys-general on Monday in Chicago. A conference call with Republican state prosecutors is scheduled for Monday night.

More: http://www.ft.com/intl/cms/s/0/bc4e477a-438f-11e1-adda-00144feab49a.html#axzz1k85P1ZZl