Settlement Of Foreclosure Probe Could Be Delayed
Sources close to a federal probe into banks' foreclosure practices say that a settlement over the matter could be delayed because of disagreements over the size and shape of the settlement. Banking regulators and a coalition of state attorneys general are pushing for a settlement with several of the nation's largest banks that stand accused of foreclosing on borrowers utilizing faulty or incomplete paperwork.
The banks want to resolve the matter as quickly as possible because the matter represents a black eye on the industry's reputation, and they also face uncertainty over lawsuits and fines they could face without a universal settlement in place. Sources familiar with settlement discussions say the various groups involved differ on the parameters of a possible settlement, but that banking regulators are striving to have an agreement in place by mid-March.
The Wall Street Journal reported on Tuesday that several parties involved in the talks have tossed around the number of $20 billion as a possible settlement amount.
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