Foreclosure deal with banks is ‘very close,’ HUD’s chief says

Foreclosure deal with banks is ‘very close,’ HUD’s chief says

The government and banks are “very close” to reaching a legal settlement over alleged foreclosure abuses that could help about 1 million underwater borrowers get mortgage relief, U.S. Housing and Urban Development Secretary Shaun Donovan said on Wednesday.

“We’re very close to a settlement that would both fix the servicing problems, but also help over a million families around the country stay in their homes and get help,” Donovan said in response to a question during a forum at the Winter Meeting of the U.S. Conference of Mayors in Washington.

Talks between federal and state officials and major lenders aimed at resolving allegations of illegal foreclosure practices have dragged into their second year.

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