Friday, October 28, 2011

Report: Mortgage Settlement deal could be reached within a month

by Bill McBride on 10/28/2011 03:55:00 PM

From Reuters: Analysis: Mortgage probe may open new path for housing relief

Settlement talks continue with the banks, state attorneys general and some federal agencies over foreclosure shortcuts and other abuses. A deal could be struck within a month, according to people familiar with the matter.
...
Five major banks could be required to commit roughly $15 billion to reduce principal balances for struggling homeowners and modify loans in other ways under a proposed deal to settle allegations linked to the "robo-signing" scandal.

That amount would be part of broader sanctions that could total $25 billion ... Much of the exact language has yet to be hashed out but it could provide for the first broad use of principal writedowns ...
It appears there will be two more housing related announcements soon: this mortgage settlement, and an REO disposition program for Fannie/Freddie/FHA (also the changes to the HARP refinance program were announced this week).