State Attorney General

Fed Agreement in Principle with Banking Organizations Regarding Monetary Sanctions

On February 9, the Fed announced its agreement in principle with five banks on $766.5 million in monetary sanctions against the banks for unsafe and unsound processes and practices in residential mortgage loan servicing and foreclosure processing. The sanctions are issued in conjunction with, and included in, the settlement agreement among the banks, state attorneys general, and the Department of Justice, also dated February 9. Under the Fed’s agreement, the banks will be required to pay the amount of the sanctions not used within two years to provide borrower assistance or remediation, or to provide funding for housing counseling. Fed Release.

State AGs and Federal Regulators Settlement with Mortgage Servicers

On February 9, U.S. Attorney General Eric Holder, HUD Secretary Shaun Donovan and a coalition of forty-nine state attorneys general announced a $25 billion joint federal-state settlement with Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup, Inc., and Ally Financial, Inc. (formerly GMAC) (the nation’s five largest mortgage servicers, controlling approximately 60% of the mortgage servicing market), related to claims of alleged mortgage abuses and fraud, and an agreement related to standards for mortgage servicing in the future. Click here to read more.