by Bill McBride on 3/07/2011 06:00:00 PM
Monday, March 07, 2011
American Banker has posted the 27 page draft servicer settlement agreement that the state attorneys general sent to the servicers last week.
Settlement Terms (27 page PDF)
And from Cheyenne Hopkins at American Banker: Cheat Sheet: How the State AGs Want to Revamp Mortgage Servicing
The 27-page term sheet handed to the five largest mortgage servicers last week is a detailed, dense list of requirements that, if implemented as proposed, would fundamentally change the relationship between servicers, investors and borrowers.The article has a nice summary of the document.
The term sheet, obtained by American Banker and available here, is just the opening bid in an ongoing negotiating process between the servicers and various state and federal agencies attempting to punish them for significant issues uncovered in the foreclosure process. While some of the details of the term sheet have been made public already, the sheer breadth and depth of the proposed requirements were not clear until now.