Friday, April 1, 2011

Banks to AGs on Servicing Fraud: Drop Dead - Credit Slips

Banks to AGs on Servicing Fraud: Drop Dead - Credit Slips: "Here's the banks' counterproposal for a servicing fraud settlement. I can sum it up in two words: drop dead. Or two letters: F.U. This proposals is so pathetically thin that it's not a good faith counterproposal. This document only deals with servicing standards--nothing in it whatsoever about penalties, modification quotas, etc. But even on servicing standards it is a bunch of empty promises to have internal controls and try harder.

The first point about this counterproposal is simply to note what's absent from it:

(1) nothing about principal reductions

(2) nothing about second liens and conflicts of interes"

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