Largest loan lenders may settle with attorneys general quickly
The largest loan lenders may be the first to settle with various state attorneys general. All 50 states are investigating foreclosure practices and procedures of various banks and loan companies. The findings indicate not everyone has played by the rules.
Quick settlement may be forthcoming from large loan lenders
As every state attorney general is looking into foreclosure practices, especially the “robo-signing” controversy, the nation’s largest loan lenders for mortgages are lining up to reach a settlement as quickly as possible, according to Reuters. A widespread probe into mortgage foreclosures began several months ago, conducted by attorneys general from all 50 states, so foreclosures from Scottsdale, Arizona, to Birmingham, Alabama, will be scrutinized. It appears that the nation’s largest loan lenders are ready to settle, including Bank of America, Wells Fargo, Ally Financial, JP Morgan Chase and Citigroup, according to a recent statement from Iowa Attorney General Tom Miller. No concrete settlement has been reached, and no instant cash handed over for fines yet, but that could be the case fairly soon.
States shun bad practices
The finance industry has been under heavier scrutiny over the past few years, and the revelation that banks may have mechanically produced foreclosure documents without merit, which is called “robo-signing,” certainly does not paint the largest loan companies in the nation in a good light. People may have been issued foreclosure notices even though they were up to date on the installment loans they borrowed for their homes; this explains why all 50 state attorneys general are looking into the matter.
Housing market still down
The housing market is still on a shaky foundation. Homes have been losing value, and fewer people are confident about buying. If consumers become less confident that the institution that their mortgage was obtained through is honest or trustworthy, it could be a recipe for disaster.