In light of ongoing talks dealing with the resolution of mortgage servicing concerns and fallout from the robo-signer debacle last fall, state attorneys general decided yesterday to take Bank of America chief executive Brian Moynihan to lunch. Despite the innocuous sound of boxed lunches and an afternoon meeting on financial reform, however, what they really wanted to do was “urge Bank of American to be a leader in those negotiations, to come forward and do the right thing,” explained North Carolina AG Roy Cooper. The group did this in a private meeting with Moynihan immediately before the chief executive’s speech to the gathered AGs.
It is yet to be seen what their “friendly urging” will ultimately yield. In prepared remarks, Moynihan stuck firmly to his opposition to broad-based rulings on principal reductions, saying that “fairness is a major concern” and that it would be unfair to reduce principal for people who have not paid when so many have stayed current on their loans.
“That is just…one of the issues that will be debated,” responded Cooper after the presentation.
Moynihan also faced criticism that his bank is “too big to fail” and suggestions that BofA be “slimmed down” to help deal with these issues.
Do you think that there is any headway being made in the mortgage servicing settlement whatsoever?
Thank you for reading the Bryan Ellis Real Estate Letter!
Your comments and questions are welcomed below.