As Obama homes in on $25B mortgage settlement, Schneiderman holds out for more

TRD New York /
Aug.August 25, 2011 11:56 AM

New York State Attorney General Eric Schneiderman is hindering federal efforts to negotiate a foreclosure settlement with Wall Street banks on behalf of homeowners, the Wall Street Journal said, by insisting banks should pay for investor losses, too.

In combating the robo-signing practice, the Obama administration “is very far down the road for a settlement that will create servicing standards, and will also result in a significant financial contribution towards helping homeowners,” an administration official said, that is believed to be worth nearly $25 billion. Schneiderman, who was removed from leading the settlement panel because of his aggressiveness earlier this week, wants to punish the banks, and extract more money in a settlement, and has support from several other state prosecutors, all of which are needed to sign off on the agreement.

Some within the negotiations want Schneiderman to sign off on the consumer settlement, and attack the banks on behalf of investors separately, the Journal said. But Schneiderman believes the agreement would preclude him from prosecuting banks for mortgage-related activity. While Schneiderman is “committed to a comprehensive solution,” his spokesperson said, other state officials say “we’re interested in helping homeowners… we’re not interested in helping hedge funds.” [WSJ]


Related Articles

arrow_forward_ios
Nationwide foreclosures are at a 15-year low (Credit: iStock)

Foreclosures nationwide fell to 15-year low in 2019

494 Broadway and Thor Equities' Joe Sitt (Credit: Google Maps)

Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”

Maefield Development's Mark Siffin and 20 Times Square (Credit: Maefield)

Lender forecloses on Maefield’s billion-dollar Times Square project

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

15 East 63rd Street and Oleg Cassini (Credit: Google Maps and Getty Images)

Oleg Cassini’s former UES headquarters faces foreclosure

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties

arrow_forward_ios
Loading...