The American Banker Reports that there is not so much as a term sheet, let alone a final enforceable settlement agreement between State Attorneys General, the US Justice Department and the 5 largest mortgage servicers.
If a lawyer in my office suggested that we announce a settlement with any Bank, absent a written agreement, I wouldn’t allow it. I’m concerned that 49 State Attorneys General and the Federal Government did.
If my experience negotiating settlements with banks is any indication, the terms of settlement constantly change until an agreement is reduced to writing. There are contentious issues relating to the extent of any liability releases that State and Federal Enforcers might grant to the banks that have been described vaguely at best.
Abigail Field in her thoughtful blog Reality Check thinks the AG’s might walk.
I’m more worried that that won’t.
