Partial Settlement Reached in U.S. Mortgage Meltdown Litigation.

Yes, I can admit that I was rather skeptical when I last blogged on this issue back on September 3, 2011.[1]  However, a large group of State Attorneys General and the Federal Government, have now reached a settlement for “robo-signing”[2] violations, with 5 (“five”) financial institutions for their “alleged” role in the ongoing U.S. mortgage crisis.[3]

The final settlement number, with, apparently all State Attorneys General except the one for Oklahoma, is $25 Billion; and the Federal Attorney-General, Eric Holder, has both made a press release,[4] and established an informational website for homeowners.[5]

Many are still waiting to see what happens with the Fannie Mae and Freddie Mac suit.[6]  In the meantime, however, all those touched by the mortgage crisis or with an interest in seeing it dealt with to their satisfaction, should pay very close attention to how this partial settlement will be implemented, whether its implementation follows that plan, and how effective it turns out to be, for those suffering homeowners that it is intended to help.

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Author:

Ekundayo George is a Sociologist, Lawyer, and Strategic Consultant, with experience in business law and counseling, diverse litigation, and regulatory practice.  He is licensed to practice law inOntario,Canada, as well as multiple states of the United States of America (U.S.A.); and he has published in Environmental Law and Policy (National Security aspects).

Hyperlinks to external sites are provided as a courtesy and convenience, only, and no warranty is made or responsibility assumed for their content, accuracy, or availability.

This article does not constitute legal advice or create any lawyer-client relationship.

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[1] Ekundayo George. U.S. Government File Suit Against Financial Institutions for Mortgage Crisis.  Published on September 3, 2011.  Available at: https://ogalaws.wordpress.com/2011/09/03/u-s-government-files-suit-against-financial-institutions-for-mortgage-crisis/

[2] Robo-signing was the practice whereby mortgage servicers, “routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct”.  See Infra, note 5, below

[3] BBC News.  US banks agree $25bn mortgage settlement.  Published in Business, on February 9, 2012.  Available at: http://www.bbc.co.uk/news/business-16961355

[4] United States Department of Justice.  Attorney General Eric Holder Delivers Remarks at the Mortgage Services Settlement Press Conference.  Published on Thursday, February 9, 2012.  Available at: http://www.justice.gov/iso/opa/ag/speeches/2012/ag-speech-1202091.html

[5] national Mortgage Settlement Website: Federal Government & Attorneys General reach landmark settlement with major banks.  Available at: http://www.nationalmortgagesettlement.com

[6] See generally, supra, blog article cited in note 1, above, at the text accompanying notes 1 and 5, therein.