More AG Defections Possible In Federal Mortgage Settlement

The reported 50-state attorney general mortgage settlement could soon be down to less than 40, as various AG’s recently met outside of the federally sponsored snow job on mortgage abuses.  Attorney’s General from several new states including Hawaii, New Hampshire, Missouri, Mississippi, Maryland, Kentucky and Minnesota attended a parallel discussion on how to properly address the problem (criminal activity).

“This past Tuesday, a group of like-minded Attorneys General met in D.C. to discuss ongoing and future investigations into the mortgage finance and foreclosure industries,” said Delaware Deputy Attorney General Ian McConnel.

“The talks weren’t just about investigations,” said a source with knowledge of the discussions. “They were also about the attorneys general offices feeling uninvolved in a process by which their federal colleagues have been negotiating on their behalf.”

The supposed settlment being pushed by Washington is nothing more than another handout to the financial industry.  Several AG’s including New York, Delaware, Nevada and Massachusetts have already defected from the settlement talks.  New defections could put a kink in Washington’s plan for a settlement and the banks hopes for a release on reps and warranties (i.e. securities fraud).

Sadly, the state hardest hit by the foreclosure crisis continues to be a cesspool of lawlessness where the Florida AG’s office continues to tow the line for banks and servicers, even in the face of mounds of evidence of criminal activity.  Pam Bondi’s office has devolved into the BFF of foreclosure fraudsters.  But then again, Florida’s corruption problem is not extremely surprising when you consider that Rick Scott is Florida’s governor.

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