Reuters reports that U.S. Housing and Urban Development Secretary Shaun Donovan announced that a deal between the leading financial services institutions and the combination of state attorneys general and federal regulators is on the horizon.
‘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 yesterday during a speech before the U.S. Conference of Mayors meeting in Washington, D.C.
Although he did not give specifics on the timing of the settlement announcement or the scope of the deal, Donovan stated it would be ‘far and away the largest principal reduction of the crisis.’ He also promised that an unspecified number of homeowners would ‘get direct compensation as a result of the settlement.’
Donovan added that President Obama will also be placing a greater emphasis on housing issues in the coming months. ‘You will hear a president who is going to be aggressive on housing, on the issues of refinancing and principal write-down,’ he said.