Holdout states lured back into mortgage deal

Wed Feb 8, 2012 6:49pm EST

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(Reuters) - California and New York, two key holdout states for a multi-state mortgage settlement, are expected to join the deal, smoothing the way for an announcement expected on Thursday, according to a person familiar with the matter.

Florida, with its large distressed housing market, was also close to joining the settlement that resolves civil government lawsuits over faulty foreclosures and servicing misconduct, a separate person familiar with the deal said.

More than 40 states said they would join the estimated $25 billion settlement in advance of a February 6 deadline, but several states continued negotiations to address concerns specific to their state.

The value of the state-federal settlement would have dropped significantly if California and Florida decided not to join.

(Reporting By Aruna Viswanatha, Rick Rothacker, Karen Friefeld, with additional reporting by Kevin Gray)

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Comments (1)
NYFraudLaw wrote:
We have to applaud the efforts of the Attorneys General who are holdouts in this deal. They are comprised of big states and understand that robo-signing was systemic and not isolated fraud. Banks efforts were aimed at cutting costs and making the transfer of mortgages easier and more fluid so that they could be traded. My firm continues to fight lenders wrongdoing beyond the AGs settlement since they were guilty of a lot more misconduct. – Jeff Benjamin P.C. www.nyfraudlaw.com… (718) 263-1111

Feb 09, 2012 1:52pm EST  --  Report as abuse
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