Friday, March 25, 2011

Disagreement, Negotiation Delays Problematic for Servicer Settlement

Attorneys general Kenneth Cuccinelli of Virginia, Greg Abbott of Texas, Pam Bondi of Florida, and Alan Wilson of South Carolina sent a letter to Miller because they wanted to “raise concerns about certain provisions of the draft term sheet submitted to mortgage servicers this month.”

The AGs are not the only ones with concerns about the 27-page proposal. Several of the servicers have spoken out against some of the terms within the settlement, particularly ones regarding mandatory principal write-downs for underwater borrowers.

AGs assert that the proposal’s suggestion of principal write-downs for underwater borrowers “do a disservice to homeowners who, despite an economic downturn, have worked hard to maintain their mortgages.”  Hell YA!   Either give a principal reduction to everyone- even thosse who are not underwater bc they didn't tsake all their equity out or buy a home they couldn't afford- or no one!