A potential $25 billion settlement between the nation’s four largest banks and the 50 state attorneys general over faulty foreclosure processing is imminent.
Or at least it’s closer than it’s been, given that we are now well over a year into the negotiations. The deadline for states to sign on was last Friday. Of course that was extended to today, and we haven’t heard anything from the negotiation team leader, Iowa Attorney General Tom Miller.
So I’m sticking with imminent.
With a deal so close, many details have “leaked,” none of which are hard and fast truths, but many of which got me to thinking, specifically when it comes to the numbers and who gets what. $25B is the big round figure. $17 billion of that is supposed to go to principal write down on troubled loans. $3 billion in, I guess you call it restitution, is supposed to go to borrowers who have already lost their homes to foreclosure. The rest would go to some kind of reserve account for state and federal foreclosure relief programs.
So how many people get what?