From the NY Post:
America’s biggest mortgage servicers are still weeks from reaching a potential multibillion-dollar deal with federal and state officials to settle the foreclosure fiasco, The Post has learned.
Key sticking points include the amount each bank will have shell out and whether the firms will be released from future lawsuits once a broad accord is struck, sources said. Banks could be hit with as much as $25 billion in fines.
Negotiators had hoped to reach an agreement in principle by last week or possibly this week.
But a source close to the talks between the five biggest US banks and 50 state attorneys general and federal regulators said discussions aren’t as far along as hoped and that an agreement might be reached in the next three to four weeks.
The settlement as it is now structured would form two types of funds — one national and funds for each of the states — that would settle most state and federal civil foreclosure claims against Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, formerly known as GMAC.
Last week, JPMorgan CEO Jamie Dimon voiced some frustration with the process and described the mortgage mess as an “unmitigated disaster” during a conference call with analysts to discuss second-quarter results. “We just really need to clean it up for the sake of everybody,” Dimon said. “And everybody is going to sue everybody else, and it’s going to go on for a long time.”