Securities and Financial Sector Legal Review

Update: $25 Billion Mortgage Servicing Settlement Approved by Court

Posted in Mortgage Lending and Foreclosure, Regulatory Actions

We previously posted (see here and here) regarding the $25 billion settlement entered into between the Justice Department, 49 state attorneys general and the nation’s five largest mortgage servicers.

Last week, Judge Rosemary Collyer, of the United States District Court for the District of Columbia, approved the settlement, and signed off on five consent orders (JPMorgan, Bank of America, Citi, Wells Fargo and Ally).

According to Reuters, The Association of Mortgage Investors, “a trade group that represents investors with interests in mortgage settlements, had said they planned to ask for changes to the settlement, but did not file a formal challenge in court.” Similarly, the Denver Post reported that “one trade group hint[ed] at a potential legal challenge.”