Servicer Settlement Could Cost $60 Billion
Video of House hearing on foreclosures
July 7, 2011
| A potential settlement between state attorneys general and the biggest U.S. mortgage servicers could possibly reach $60 million.
The potential amount was disclosed in an oral statement Thursday by Rep. Randy Neugebauer (R-Texas), who is the chairman of the Oversight and Investigations Subcommittee. Neugebauer was speaking at a hearing on mortgage servicing and foreclosure mitigation practices. “The breadth and the term of the term sheets presented to the mortgage servicers, which includes a potential $20 billion settlement — now we’re hearing that could be a $60 billion settlement — for principal reduction fund magnifies these concerns that the administration and some state AGs are attempting to legislate through enforcement,” Neugebauer said in a prepared statement. |
