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Thursday, June 02, 2011

HUD Secretary Donovan: Foreclosure Settlement in a "matter of weeks"

by Calculated Risk on 6/02/2011 09:31:00 PM

From the LA Times: Foreclosure settlement to come in a 'matter of weeks,' HUD secretary says

A settlement between a coalition of federal and state agencies and banks over foreclosure practices will come in a “matter of weeks,” Shaun Donovan, secretary of Housing and Urban Development, told the Los Angeles Times.
Banks have said they are willing to pay a settlement of $5 billion, according to Bloomberg News, while government officials have pushed for a settlement of as much as $25 billion, according to Times reporting.
This isn't just about the amount, but also how the money is counted. The banks want to count "cash for keys" payments and possibly even principal reduction - in other words for costs they are already paying. Not much of a penalty.