What's going on w/ NY's Lawsky's agreement w/ banksters on robo signing?
Update and corrections: A Little Night Music has more indepth and correct information about this agreement. See comments below.
NPR had a very brief report that
Schneiderman, Correction: make that New York State, has reached an agreement with the delinquent banks, that the banksters have "promised" to look at all the documentation...not sure robo signing will cease.
Update: NPR transcript from above link--
STEVE INSKEEP, host:
NPR's business news starts with promise from mortgage companies.
(Soundbite of music)
INSKEEP: New York State struck a deal with major mortgage servicers to clean up some of their most controversial practices, that's according to or friends at The Wall Street Journal. The Journal says New York's top financial service regulator is expected to announce a deal with three major mortgage servicing companies, including one owned by Goldman Sachs.
The Journal says that under this deal the companies promise to stop robo-signing, signing off on foreclosure documents without fully looking over the papers in the case, as is legally required.
Companies in New York account for nearly two-thirds of mortgage servicing activity, nationwide.
Original write-up from NPR:
September 1, 2011
Officials in New York have struck a deal with major mortgage servicers to clean up some of their most controversial practices, according to The Wall Street Journal. Under the deal, the companies promise to stop signing off on foreclosure documents without fully looking over the papers in the case, as is legally required.
So, are they being given a get out of screwing up big time free card from NY's
AG? Correction: From NY's financial services superintendent, Benjamin M. Lawsky? Or...??
Under the agreement with the state's financial-services superintendent, Benjamin M. Lawsky, the three firms—Goldman, its Litton Loan Servicing business and Ocwen Financial Corp.—promised to end so-called robo-signing, in which bank employees signed foreclosure documents without reviewing case files as required by law. They also agreed to comb through loan files for evidence they mishandled borrowers' paperwork and to cut mortgage payments for some New York homeowners.
I can't read more as it's behind the WSJ paywall. All emphasis is mine.
Looks like the banksters will be self-investigating and self-regulating?? What is going on with this?
Again: More info in ALNM's comments below.