AG Bondi interested in alternative settlement with banks
by Kim Miller
Florida Attorney General Pam Bondi said she’s interested in reviewing an alternative bank settlement proposed by Oklahoma Attorney General E. Scott Pruitt in lieu of what is being hammered out by the leadership of the 50-state attorneys general.
Pruitt said last week he asked his attorneys to prepare an option that does not require servicers to pay at least $20 billion in fines and use the money to reduce the principal amount on mortgages of borrowers who owe more on their loan than their home is worth, according to a Washington Post article.
Bondi joined a handful of other Republicans last month in a letter expressing concerns about how a proposed settlement with the nation’s banks regarding foreclosure abuses could force them to reduce loan amounts.
On Thursday, Bondi said she’s interested in reviewing Pruitt’s plan.
“While Attorney General Bondi will continue to participate in the multi-state settlement discussions, she looks forward to reviewing any alternative plan developed by Attorney General Pruitt,” said Jenn Meale, Bondi’s communications director in response to a question by The Palm Beach Post.
Pruitt’s plan could force a rift between the main group of attorneys general, led by Iowa Attorney General Tom Miller, and those who believe his proposal goes beyond their authority.
It’s unclear how close Miller is to closing a deal with the banks. Banking regulators announced a separate deal last week with several lenders and servicers taht requires them to hire consultants to review foreclosures and determine if any homeowners were harmed by their shoddy practices.
Tags: foreclosure, Foreclosures, pam bondi, tom miller