“Today’s announcement of a settlement between 49 state attorneys general, federal officials, and five major banks is an important breakthrough for the housing industry. It provides relief to Americans who were subjected to shoddy foreclosures. It sets aside billions of dollars for principal reduction modifications that will help homeowners get out from being underwater. It provides certainty to banks so that they will more freely lend and help the economy move forward. And it puts the painful but necessary foreclosure process back on track so that we can move these distressed properties through the pipeline and get housing back in the black.
“President Obama, Attorney General Holder, and HUD Secretary Donovan each deserve a great deal of credit for bringing the players to the table and painstakingly negotiating a deal. This settlement provides a ray of sunlight in the cloudy housing market and is a critical step forward to keep the economy moving and to get housing on track.”