National Foreclosure Settlement Still Months Away

mortgage modifications
mortgage modifications

Closure for the thousands of homeowners affected by faulty foreclosure proceedings may still be several months away, despite the joint efforts of federal and state agencies, according to HousingWire.

Following a national investigation initiated by the 50 state attorneys general in October, a settlement was proposed in March to set new a code of conduct for mortgage servicers and – more pressingly – redress foreclosed homeowners' claims of wrongful home repossessions and lender malfeasance. The settlement outlines 16 points lenders must satisfy before seeking foreclosure, including a mandated review of all "robo-signed" documents.

But several attorneys have rejected the proposal, leaving the fate of a concerted national probe of mortgage servicers in a state of limbo.