BREAKING - Obama Administration And Banks Near Deal On Mortgage Fraud Settlement

All things considered, this doesn't look like too bad of a deal, as banks are not being released from criminal liability.

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Huff Po

WASHINGTON -- The Obama administration, state attorneys general, and, perhaps, the nation's largest banks are close to a final settlement on the years-long struggle over allegations of massive foreclosure fraud, according to several sources familiar with the talks. And the final details of the arrangement, according to the source who revealed them, will apparently not preclude prosecutors and regulators from taking legal action against many of the common abuses during the house bubble. It remains to be seen whether all parties will ultimately sign off on the language.

The settlement is worth $25 billion, a sum which will be distributed to homeowners who were wrongfully foreclosed on as well as those who remain underwater. In addition, banks could still face future legal action over 12 specific violations.

According to someone intimate with the negotiations, there will be no legal release of the banks with respect to:

1. Criminal liability.
2. Tax liability
3. Fair lending, fair housing, or any other civil rights claim.
4. Federal Housing Finance Agency or the GSEs [Fannie Mae and Freddie Mac]
5. CFPB claims for the period after they came into existence in July 2011
6. SEC claims
7. National Credit Union Association Claims
8. FDIC claims
9. Federal Reserve Board claims
10. MERS claims

In addition, the source said, there will be preservation of the vast majority of securitization claims including all claims regarding state pension funds as well as the vast majority of the origination fraud claims from HUD, the VA and the USDA.

According to Mike Lux, who originally reported the settlement for The Huffington Post, the release will be "almost entirely confined to robosigning cases" -- meaning that banks will likely not see further punishment from the states for foreclosure fraud. Robosigning fraud is perhaps the easiest type of misconduct for prosecutors to target.

That said, their legal liabilities on the federal level remain vast, even after handing over $25 billion for homeowner relief.

The announcement is, in some regards, a victory for the few state attorneys general who, over the course of several months, refused to sign off on a quick and limited settlement with the big banks.

"I think it is fair to give [New York Attorney General] Eric Schneiderman and the other progressive attorneys general a lot of credit for holding the line," said a source intimate with the negotiations. "This is a big victory for them."

Continue reading...

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Related story:

• New Obama Foreclosure Plan Shifts Fraud Liability From Wall Street To Taxpayers

Comments

[Sagebrush]

I wonder, does $25 billion even come close to covering the damage caused to the victims of the criminal fraud committed by these financial institutions their mortgage services and MERS? Robosigning is criminal fraud and a lot of cases have ended up as Fraud Upon The Court, I think the people involved should be prosecuted to full extent of the law, and that bull**it $25 billion raised to actual damages with an allowance for the emotional upheaval the victims endured because of said criminal activity.

This settlement sounds to me like another one of Obama's promises that will go in the shredder as quick as he can put it there. You know, kind of like all of his grand campaign promises that he now pretends never existed. Almost all of those are in new unused condition, I wonder, do you suppose he's going to recycle them for the next election?

[willy blikethis]

Will it b lik this?

http://dailybail.com/home/new-obama-foreclosure-plan-shifts-fraud-liability-from-wall.html

http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html

What about NDAA (habeas corpus)

[DailyBail]

I wonder, does $25 billion even come close to covering the damage caused to the victims of the criminal fraud committed by these financial institutions their mortgage services and MERS? Robosigning is criminal fraud and a lot of cases have ended up as Fraud Upon The Court, I think the people involved should be prosecuted to full extent of the law, and that bull**it $25 billion raised to actual damages with an allowance for the emotional upheaval the victims endured because of said criminal activity.

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That is why I highlighted the fact that the settlement does not absolve the banks of criminal liability. Now, actually getting Eric Holder to bring charges, probably isn't going to happen, but the state AGs just might. At least in a few states.

[Miguel Grande]

The Obama administration is now complicit in these massive financial crimes which cost the tax payers $27 trillion. They have settled for one penny on the dollar.

[DailyBail]

Miguel

I'm as angry as anyone about the bailouts. Hell I started a website dedicated to them. But the $27 trillion number is a cumulative support number, most of which were low-interest Fed loans that were paid back. I'm not excusing the loans, mind you, just pointing out that the banks were not given that total.

[john]

Five Democratic 'super' PACs may seek joint operation

http://www.mcclatchydc.com/2012/02/08/138332/five-democratic-super-pacs-may.html

[snip]

Five Democratic "super" political action committees are reaching out to party mega-donors seeking $1 million to $10 million contributions, now that President Barack Obama has blessed the outside spending group working to get him re-elected.

Discussions among the five super PACs are under way about setting up a joint fundraising committee, said Bill Burton, a former deputy White House press secretary and co-founder of Priorities USA Action, which was launched last spring to help Obama win a second term.


Note: Looks like they will get lots of donations due to the fraudclosure settlement.