The latest disastrous turn in Bank of America’s acquisition of Countrywide Financial has the nation’s second largest lender paying a record $335 million penalty for Countrywide charging more to lenders of certain races and origins.

The settlement is more than 10 times the total amount the U.S. Department of Justice has collected for all previous fair-lending settlements, according to Bloomberg News. Individual borrowers could collect more than $1,000 from the settlement, depending on the form of the loan. [more]

New York Attorney General Eric Schneiderman

New York Attorney General Eric Schneiderman has been removed as a leader of a panel negotiating a settlement with U.S. mortgage servicers, Bloomberg News reported, after he was accused of trying to undermine the work of the group.

“New York has actively worked to undermine the very same multi-state group that it had spent the previous nine months working very closely with,” said Iowa Attorney General Tom Miller, who is leading the state group. For a member of the executive committee, that “simply doesn’t make sense, is unprecedented and is unacceptable.” America’s largest mortgage providers have been negotiating a deal with the Department of Justice and 50 state attorneys general to work out foreclosure issues, including robo-signing. [more]

America’s largest mortgage providers are nearing a deal with the Department of Justice and 50 state attorneys general to work out some “thorny” foreclosure issues, including robo-singing, the New York Post reported. A proposed settlement, scheduled to be announced in the next few weeks, could range as high as $60 billion and include provisions for principal reduction.

The agreement would form national and state funds for each of the states and settle most civil foreclosure claims against Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.

Sources close to the action are wary of talks falling apart at the last moment as the state and bank representatives iron out small details, the Post said. [more]

Leigh Zaph is planning on registering his three-person firm, Manhattan Homes, as a Virtual Office Web site.

From the December issue:
A new breed of online brokerage is springing up in New York, altering
the landscape of real estate sales in Manhattan and worrying
traditional firms, who fear the changes may hurt their business. In the past, New York firms have contended with Web aggregators
like StreetEasy and Trulia, which gather and post information on local
brokerage listings. But thanks to a recent settlement between the federal Department of
Justice and the National Association of Realtors, the Real Estate Board
of New York is now sharing all of its members’ listings directly with
online brokerages, known as “Virtual Office Web sites.” These VOWs, as they are called, allow consumers to view those listings — including those from other firms — online. Experts say the change will have far-reaching consequences for the
industry in the coming year and beyond. Some believe VOWs could also
pave the way for a comprehensive Multiple Listing Service, which has
long been resisted here.  More

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