Photo: Taber Andrew Bain via Flickr
Banks and state attorney are nearing a settlement at the foreclosure-gate hearings going on right now, CNBC’s Diana Olick reports.It looks like there are going to be three big agreements:
- Banks would pay into a fund to compensate borrowers whose mortgages were wrongfully foreclosed. It’s not clear how much each bank would pay into the fund.
- Banks are getting rid of the dual track for modifications and foreclosures. This will prevent the recurring nightmare of homeowners getting foreclosed on while they thought a modification was in the works.
- A third party will mediate review of all cases where borrowers say foreclosure was in err.
This is pretty clearly a good settlement for the banks. Although compensation figures haven’t been released, we can’t imagine they’d be very high. Moreover, there won’t be any blanket settlement.
And here’s the key upshot: banks can move past foreclosure-gate and get back to what they do best, foreclosing on people as fast as possible.