Resolution to Offer Strict Guidelines on Mortgage Settlement

Updated

WASHINGTON -- Rep. Tammy Baldwin (D-Wis.) is set to introduce a resolution in Congress this week calling on the Obama administration and state attorneys general to ensure that any deal reached with the nation's biggest banks on foreclosure abuses includes full investigations into what happened, awards proper compensation to victims and provides no immunity for potential wrongdoing.

U.S. Attorney General Eric Holder and the state AGs have been working with the nation's five largest mortgage firms -- Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo -- to settle disputes over potentially illegal foreclosure practices, such as the so-called robo-signing of foreclosure documents.

Baldwin's resolution states that any settlement should follow three guidelines:

1. Banks that engaged in fraudulent behavior "should not be granted criminal or civil immunity for potential wrongdoing related to illegal mortgage and foreclosure practices."
2. The federal government and state AGs should "proceed with full investigations into claims of fraudulent behavior by mortgage servicers."
3. Any monetary sum paid by the banks should "appropriately compensate for, and accurately reflect, the extent of harm to all victims."

Read the full article on The Huffington Post.

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