The group of state attorneys general lead by Iowa's Tom Miller have offered the banking industry new settlement terms in their negotiations around the robosigning controversy, according to a Financial Times report.
The settlement addresses allegations that banks including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial seized the homes of delinquent borrowers and broke state laws by employing “robosigners.” These are workers who signed off on foreclosure documents without reviewing the paperwork.
According to the FT report, the state prosecutors have proposed that under the new terms of the settlement the companies be released from legal liability for alleged wrongful securitization practices.
However, a spokesman for Miller said that the state attorneys general did not intend to release banks from any liability for the litigation they might face from wrongful mortgage securitization practices as part of settlement talks with financial institutions, according to a MarketWatch report.
