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Released: January 19, 2012
Mortgage settlement deal “very close”
Source: Gregory Korte & Julie Schmit, USA Today
The federal government is “very close” to a settlement with mortgage servicers that could help a million homeowners by reducing what they owe on their mortgages, Housing Secretary Shaun Donovan told a meeting of the nation’s mayors Wednesday.
Donovan said the so-called robo-signing scandal, in which mortgage servicers were accused of initiating foreclosures based on inaccurate and sometimes fraudulent documents, “exposed a whole slew of problems in servicing these mortgages that need to be fixed.”
In addition to principal reductions, the settlement would provide cash payments to a smaller number of families who were directly harmed by the servicers’ conduct, Donovan said.
Read Full Article: Mortgage settlement deal “very close”
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