Foreclosure settlement expected in near future
01/04/2011
By Credit.com Staff
Iowa Attorney General Tom Miller recently said that settlements with Bank of America, JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial are expected soon, according to a report from Bloomberg. Those five loan servicers alone control 59 percent of the mortgages nationwide.
"What we're looking at is five separate agreements with the five largest servicers," Miller told the news service. "We're still a ways away. … We're working very hard to figure out what should be in the settlement."
The investigation into foreclosure practices began in October when evidence of the robosigning controversy first came to light, the report said. A number of major lenders said they would stop seizing consumers' properties in some states until the matter was resolved.
The robosigning controversy arose because it was revealed that many banks were allowing unqualified employees to sign off on foreclosures without first examining the associated documentation. This led to a large number of homeowners to be forced from their property without cause.
