Washington, D.C. – March 10, 2011 – (RealEstateRama) — The Independent Community Bankers of America (ICBA) issued the following statement today regarding the release of the state attorneys general foreclosure settlement term sheet.
“While much of Wall Street has already recovered from the financial fallout, many of America’s Main Street communities continue to struggle with its harsh effects. The last thing these communities need is further deterioration of their already fragile housing markets and economies caused by these proposed settlement terms that would delay legitimate foreclosure actions and permit bankruptcy judges to reduce mortgage balances.
“While the recently released state attorneys general foreclosure settlement term sheet attempts to improve mortgage servicing processes through a very prescriptive set of standards, it will likely cause additional upheaval and confusion. In fact, the term sheet appears to be de facto regulation done outside of both the Congress and the established rule making process thus opening a back door to cramdown.
“ICBA is staunchly opposed to any legislation that includes a cramdown. Simply put, it is bad policy that doesn’t do one bit of good for Main Street communities or the banks that serve them.”