From the NY Post:
The nation’s six largest mortgage lenders — chastised by a New Jersey judge last month for shoddy foreclosure practices and threatened with the freezing of thousands of foreclosure actions — are expected to open settlement talks with the judge today.
New Jersey Superior Court Judge Mary Jacobson had ordered the banks to appear in her courtroom today to prove their foreclosure practices are legitimate — but that hearing has been pushed back until Feb. 14 to allow for the two sides to seek to settle the matter.
Lawyers for banks ensnared in a nationwide robo-signing foreclosure scandal — including JPMorgan Chase, Bank of America and GMAC’s Ally Financial — are scheduled to meet with Edward Dauber, the court’s lawyer in the case, to discuss a possible deal this morning, court documents show.
Dauber didn’t return a request for comment.
The banks are hoping to prove to the judge that they have cleaned up their act following a nationwide scandal exposing the banks’ widespread practice of submitting forged or falsified documents, so-called robo-signing of loan documents, to speed up home foreclosures.
Last month, in an effort to ensure New Jersey residents aren’t being illegally kicked out of their homes, the state’s chief justice, Stuart Rabner, took the unusual step of ordering the banks to prove their foreclosures are on the up-and-up within 30 days or risk their foreclosure cases being suspended.
GMAC serviced 4,354 foreclosures in New Jersey as of Nov. 30, and Citigroup said it has 4,023 active foreclosures in the state, court filings show.