SCHNEIDERMAN PRESSURED BY HUD'S SECRETARY SHAUN DONOVAN TO ACCEPT A SETTLEMENT

NYT: Donovan
Pressuring NY AG
On Servicing Settlement

IN NEWS > MORTGAGE SERVICING BY MORTGAGEORB.COM ON MONDAY 22 AUGUST 2011    COMMENTS: 0 U.S. Department of Housing and Urban Development Secretary Shaun Donovan is reportedly trying to force New York Attorney General Eric T. Schneiderman to accept a settlement of the nation's major servicers that would prohibit future state-level investigations and prosecution of potential mortgage banking improprieties. The New York Times, citing unnamed sources, reports that Donovan and "high-level Justice Department officials" have engaged in a "campaign" to get Schneiderman's unconditional acceptance of a settlement deal, which would require the state attorneys general to agree to not pursue additional litigation relating to servicing and securitization practices. Schneiderman - along with his counterparts in Delaware, Massachusetts and Nevada - has openly objected to this aspect of the proposed settlement. "The attorney general remains concerned by any attempt at a global settlement that would shut down ongoing investigations of wrongdoing related to the mortgage crisis," said a Schneiderman spokesperson. In an interview with the Times, Donovan sought to downplay the appearance of undue pressure on Schneiderman. "Eric and I agree on a tremendous amount here," Donovan said. "The disagreement is around whether we should wait to settle and resolve the issues around the servicing practices for him - and potentially other attorneys general and other federal agencies - to complete investigations on the securitization side. He might argue that he has more leverage that way, but our view is we have the immediate opportunity to help a huge number of borrowers to stay in their homes, to help their neighborhoods and the housing market."

Related articles

• Is Secretary of HUD, Shaun Donovan, Pressuring NY State Attorney General Schneiderman on Behalf of Wall Street Banks? (johnmurphyreports.com)


• Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal (jhaines6.wordpress.com)


• New York Attorney General Kicked Off Government Group Leading Foreclosure Probe (huffingtonpost.com)


• Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal (nytimes.com)


• Bank Fraud Continued Cover Up From The White House (theforeclosuredetonator.wordpress.com)


• White House Pressuring Schneiderman to Drop Objections to Foreclosure Fraud Whitewash (news.firedoglake.com)


• NYT editorial says Schneiderman shouldn't go along with foreclosure settlement (americablog.com)


• NYT: Obama Administration Pressuring NY AG To Accept Bank Settlement Instead Of Prosecuting (crooksandliars.com)


• Obama administration takes tough stance on banks - Wall Street - Salon.com (mbcalyn.wordpress.com)


• Robert Scheer: Amnesty for the Indefensible (huffingtonpost.com)