A lead negotiator in the foreclosure settlement discussions between the nation's five biggest servicers and most state attorneys general says a deal could be worked out by Christmas.
According to the Des Moines Register, Iowa Attorney General Tom Miller says the deal would release the servicers – Bank of America, Wells Fargo, Chase, Citi and Ally – from claims pertaining to servicing and foreclosure but not to mortgage securitization activities.
The settlement would also include "substantial principal reductions" for underwater borrowers, according to Miller, as well as the creation of servicing standards.
"We're not necessarily going to take people to 100 percent to where they're totally re-equified," Patrick Madigan, Iowa assistant attorney general, told the paper. "But we're going to take them down to a level where they can see hope, quite frankly."
To read the Des Moines Register's complete coverage, click here.