Daily Journal Interviews Manatt Partner on Foreclosure Settlement
“California Still-Elusive Foreclosure Settlement Prize”Daily Journal
February 8, 2012 – The Daily Journal interviewed Manatt’s Ellen R. Marshall, co-chair of the firm’s Financial Services and Banking practice group, on California’s hesitation to participate in a massive settlement with banks over improper foreclosures.
According to the Daily Journal, California was among several states to hold off on agreeing to a settlement with the nation’s five largest mortgage lenders that would provide up to $25 billion to help reduce the loans of up to one million households and give hundreds of thousands more checks of about $2,000 each. These states remain at the negotiating tables over concerns that the settlement doesn’t go far enough to protect troubled homeowners and would limit states’ ability to sue banks for any wrongdoing that crops up later.
Legal observers told the publication that California’s participation is crucial to the settlement because it’s among those hit hardest by the housing bust, and it’s host to about 14 percent of all home loans nationwide.
Marshall thinks that California’s and other large states’ abstention from the settlement would leave “a whole lot of bank exposure not wrapped up in a bow.”
“Benefits of the settlement wouldn’t be achieved for a large chunk of homes and mortgages and people,” said Marshall.
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