Bank Bailout 2: Obama Lets Mortgage Abusers Off the Hook Leave No One Accountable

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105. AG Settlement Ends Robo-Signing and Provides a Model for Preventing Foreclosures

“The foreclosure settlement announced today will help build a stronger housing market while keeping more people in their homes. But while a significant step toward fixing the foreclosure crisis, this settlement was never intended or able to provide a comprehensive remedy. Much more work is required.

Despite its limitations, the settlement requires real reforms in the mortgage servicing industry to stop sloppy business practices and out-and-out fraud. It also will help stabilize housing markets and property values by giving more homeowners a chance to restructure or refinance out of unaffordable loans that are underwater.

The settlement calls for ramping up foreclosure prevention through large-scale use of loan modifications that lower loan balances for struggling homeowners. This approach could become a model for the rest of the market, especially Fannie Mae and Freddie Mac, which control 50% of the market.

http://www.responsiblelending.org/media-center/press-releases/archives/AG-Settlement-Ends-Robo-Signing-Provides-Model.html