New York attorney general Eric Schneiderman may only be doing what he thinks is right for his state, but he could inadvertently slow the housing recovery around the country thanks to his lawsuit against three major lenders and the Mortgage Electronic Registration System (MERS) and its owner, Merscorp.? Although Schneiderman?s lawsuit is seeking only to stop banks that rely on MERS from filing foreclosures in New York State, the outcome could affect the more than 70 million mortgage loans registered in MERS around the country . Schneiderman was removed from the executive committee of attorney generals that was working on negotiating a nationwide foreclosure settlement with U.S. banks back in August 2011 because lead attorney general Tom Miller believed that he was working to ?undermine? the efforts of the lenders and attorneys general to come to terms . Since that time multiple other attorneys general, including Catherine Masto of Nevada, Marth Coakley of Massachusetts, and Kamela Harris of California have threatened and hinted that they might also walk away from the table if their own investigations were not allowed to continue as part of the settlement.
Rumors yesterday about the settlement, which had a deadline of February 6, 2012, included speculation that Coakley and Masto would have to abandon suits against Bank of America and other lenders. Attorney general Beau Biden of Delaware has been described as ?definitely out? , while Harris said as late as noon yesterday that ?the door remains open? for California to participate . Harris walked away from the table last year and called the proposed $25 billion settlement currently up for debate ?inadequate? as recently as two weeks ago. The Obama administration, also in the mix, was dealing with California officials directly for most of Monday in an attempt to bring the state back into the fold and get Harris? name on the deal.
Update:? Catherine Masto (NV) announced yesterday that she would not make a decision about joining the nationwide settlement before the deadline for joining because she was ?still reviewing the terms.?
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Category: Real Estate, Uncategorized
Source: http://investing.bryanellis.com/722/new-york-foreclosure-lawsuit-to-slow-foreclosures/
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