Md. AG Gansler says foreclosure talks with more banks ongoing

WASHINGTON (Legal Newsline) - Maryland Attorney General Doug Gansler said Wednesday that more agreements might be coming in the wake of a $25 billion national settlement with five banks.

February's settlement was reached by 49 states and the nation's five largest mortgage servicers - Wells Fargo, JPMorgan Chase, Citigroup, Ally Financial and Bank of America. It was the result of a probe that began in October 2010 into their alleged "robosigning" practices.

Speaking at the 13th Legal Reform Summit at the U.S. Chamber of Commerce, Gansler, currently the president of the National Association of Attorneys General, said the AGs are "in the process of working with the next group of banks."

He added that the talks are part of an effort to hold all banks, with the exception of Fannie Mae and Freddie Mac, accountable.

"Certainly it's the biggest thing we've done as AGs since the tobacco litigation, so hopefully it will have a positive impact in the long-term.

Gansler considers the settlement a win-win for consumers on the brink of foreclosure and banks that now have money coming in each month. He said the economy will pick up when the foreclosure crisis "begins to stem."

Only Oklahoma did not sign on the settlement, opting to reach its own agreement. California received $18 billion.

Attorneys general have sought changes from Fannie Mae and Freddie Mac. Illinois' Lisa Madigan asked the Federal Housing Finance Agency, which oversees the two, to reassess its refusal to reduce mortgage debts for Freddie and Fannie borrowers who are now underwater.

However, in July, FHFA again refused to do so.

The U.S. Chamber Institute for Legal Reform owns Legal Newsline.

From Legal Newsline: Reach John O'Brien at jobrienwv@gmail.com.