Obama administration criticized over upcoming foreclosure settlement

Jan.January 24, 2012 11:30 AM

In the run up to a forthcoming settlement with major banks over alleged foreclosure abuses, the Obama administration is attracting criticism from Republican and even some Democratic officials who say the agreement won’t do enough to penalize the financial industry for its wrongs, the Wall Street Journal reported.

Lobbyist groups such as MoveOn.org protested outside a Chicago hotel yesterday, where Housing and Urban Development Secretary Shaun Donovan and Associate U.S. Attorney General Thomas Perrelli were meeting with Democratic attorneys general to review the terms of the settlement, the Journal said.

And some Democratic lawmakers have sympathy for the organization’s views.

“When it comes time to pay the penalty for fraudulent foreclosures, Wall Street banks again are trying to pass the buck,” said Democratic Sen. Sherrod Brown. “Instead of thorough investigations… instead of criminal prosecutions, we’re talking about not much more than a slap on the wrist.”

Donovan said the settlement would be good news for approximately a million U.S. households, reducing the amount they owe in home loans. [WSJ]

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Fredrik Eklund (Credit: Getty Images)

Fredrik Eklund talks LA condos, the mega-luxury market and patience

Boise, Idaho (Credit: iStock)

These small US cities have exploding luxury markets

(Credit: iStock and Google Maps)

The cheapest house in America’s richest town is listed for $2.5M

Medical staff outside of a Beijing hospital in February 2020 (Credit: Getty Images)

Coronavirus is wreaking havoc on China’s landlords

5Pointz (Credit: EMMANUEL DUNAND/AFP via Getty Images)

Judge upholds $6.75M award for 5Pointz artists