AG mortgage servicer investigation proceeding despite proposed settlement
Iowa Attorney General Tom Miller said the reported side settlement between mortgage servicers and federal regulators will in no way affect the ongoing investigation he is leading along with 49 other state attorneys general. Several media outlets are reporting that the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, the Office of Thrift Supervision and the Federal Reserve are engaging in talks with mortgage servicers and that agreements could be signed as early as next week. "A separate settlement by the Office of the Comptroller of the Currency will not affect our investigation," Miller said in a statement. "The settlement neither preempts, nor impacts our efforts. State attorneys general will continue to work together unabated with a broad coalition of federal partners." Bloomberg reported Tuesday that the first of as many as 14 mortgage servicers signed accords to improve internal controls with these agencies. The OCC tells HousingWire specifics will be announced next week. Bank of America (BAC), Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM) were a few servicers named in the reports, which also claimed the firms could skirt a potential $20 billion fine for their actions concerning servicing practices. Both the FDIC and the OTS deferred comment on the subject. Still, one federal representative claimed rumors of a consent order between mortgage servicers and regulators is untrue. Miller and the other state AGs, who began their investigation after the robo-signing crisis broke in October, are working with the Justice Department, the Treasury Department, the Federal Trade Commission and the Department of Housing and Urban Development in their investigation. Regardless of what deals are signed with regulators outside that, the investigation will persist, although it is likely to take months of negotiations, according to the Iowa AG. Write to Christine Ricciardi. Follow her on Twitter @HWnewbieCR. Disclosure: The author holds no relevant investments.