Banks Are Nearing A Major Settlement On Foreclosure-Gate


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:

  1. 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.
  2. 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.
  3. 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.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.