Posted by MortgageFraudNC . on Wednesday, December 14, 2011
Banks Press CFPB in Talks
Banks are demanding that the Consumer
Financial Protection Bureau relinquish the right to sue over certain
flawed mortgage originations, in exchange for their participation in a
proposed multibillion-dollar settlement of alleged foreclosure abuses.
The banks say their inability to secure a
sufficiently broad release from the new bureau, which was sidelined in
earlier discussions as it launched, would be a deal breaker. The five
biggest U.S. mortgage banks, state attorneys general and Obama
administration officials are pushing to finalize a deal before the end
of the year that would be worth $19 billion or more.
The development is the latest potential
roadblock for the settlement effort. Throughout the nearly yearlong
negotiations, banks have consistently sought extensive legal releases,
while states and federal officials have resisted. In recent weeks, the
banks have raised concerns that the CFPB will resist releasing claims
over mortgages that were originated before the bureau was chartered last
year. A CFPB spokeswoman declined to comment.
Article retrieved from: http://4closurefraud.org/2011/12/14/fraudclosure-settlement-banks-demand-the-consumer-financial-protection-bureau-relinquish-rights-to-sue-over-flawed-mortgage-originations/