Hullabaloo

Thursday, January 26, 2012

 
Kudos to CA Attorney General Kamala Harris

by David Atkins

With New York Attorney General Eric Schneiderman likely being disempowered to stop the MERS whitewash, it's up to other Attorneys General to stand firm. Fortunately, California's Attorney General Kamala Harris appears to be doing just that:

Calif. Atty. Gen. Kamala D. Harris' office has called a proposed $25-billion settlement with the nation’s mortgage industry “inadequate.”

"We've reviewed the details of the latest settlement proposal from the banks, and we believe it is inadequate for California,” Shum Preston, a spokesman for Harris, said in a statement. “Our state has been clear about what any multistate settlement must contain: transparency, relief going to the most distressed homeowners and meaningful enforcement that ensures accountability. At this point, this deal does not suffice for California."

Many analysts consider California's participation to be key to a strong deal. Harris walked away from talks with the banks last year, saying not enough was being offered by the financial institutions for California homeowners.

Since then, certain terms have been added to lure the Golden State back to the table, and Harris has opened separate inquiries into the mortgage business.

State attorneys general have received drafts of a $25-billion settlement with the nation's biggest banks that would overhaul foreclosure and mortgage servicing practices. No deal has been officially reached among the states, federal agencies and the nation's five largest mortgage servicers: Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co.,Citigroup Inc. and Ally Financial Inc. Individual states must decide whether they will join a settlement or pursue independent lawsuits and investigations.

The proposed $25-billion settlement would cover only mortgages held by the banks privately and exclude those from Fannie Mae and Freddie Mac.

Hopefully Ms. Harris will continue withstand Administration pressure to cover up massive fraud on the part of the banks.

Please take a moment to thank her for her courage. When politicians do the right thing, they deserve our support.


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thereisnospoon 1/26/2012 07:30:00 AM |