According to realestate investment newsjournal, a push by U.S. banks to win broad liability releases is now 1 of the major obstacles in talks to resolve a nationwide probe of mortgage-servicing and foreclosure practices, two individuals briefed on the matter said.
The mortgage servicers want protection from additional state and federal claims more than their mortgage practices as part of reaching a settlement that may possibly exceed $20 billion, in accordance with the men and women, who declined to be named since the talks are private. The banks are in search of releases that go beyond servicing of mortgages to contain lending and securitization of loans, one particular of the men and women said.
That effort has encountered resistance from at least two states. Delaware Attorney Common Beau Biden and New York Attorney Common Eric Schneiderman, who are investigating the bundling of mortgage loans into securities, don’t want their probes blocked by a broad settlement of liability.
"They wanted to be released from everything, including original sin," said a U.S. official involved in the talks…”...
http://www.realestateinvestingnewsjournal.com/foreclosure-talks-stalled-over-liability/
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