Bank of America Said to Seek Separate Foreclosure Deal
Aug. 3 (Bloomberg) -- Bank of America Corp. has held settlement negotiations with some states over home foreclosures separately from talks with a larger group of state and federal officials, two people familiar with the matter said.
The proposed deal would give the bank liability releases from state and federal claims over its mortgage practices in exchange for reducing loan principals to help struggling homeowners, said the people, who didn’t want to be identified because the discussions aren’t public.
State and federal officials are negotiating a settlement with the five largest mortgage servicers, including Bank of America, over their servicing and foreclosure practices. Attorneys general from all 50 states began investigating the practices last year to determine whether banks and loan servicers used faulty documents to justify foreclosures.
Bank of America, in its separate negotiations, has offered to fund more principal writedowns than what is being discussed in the larger settlement talks, one of the people said. The bank is seeking a blanket liability release that would be broader than what would be available for the other banks involved in the negotiations, the person said.
Other attorneys general were unaware of the separate talks with Bank of America, the person said.
Read entire article at the Washington Post