Guess What, the Bank Deal is Even Worse Than You Thought

We still have no written agreement, but we the North Carolina AG has released an executive summary, and it strongly implies that the immunity grant is a lot broader than has been implied:

This is the critical part:

The proposed Release contains a broad release of the banks’ conduct related to mortgage loan servicing, foreclosure preparation, and mortgage loan origination services. Claims based on these areas of past conduct by the banks cannot be brought by state attorneys general or banking regulators.

The Release applies only to the named bank parties. It does not extend to third parties who may have provided default or foreclosure services for the banks. Notably, claims against MERSCORP, Inc. or Mortgage Electronic Registration Systems, Inc. (MERS) are not released

.

This is sufficiently general so that it is hard to be certain, but It certainly reads as if it waives chain of title issues and liability related to the use of MERS. That seems to be confirmed by the fact that made by local recorders for fees are explicitly preserved (one would not think they would need to be preserved unless they might otherwise be assumed to be waived). This is exactly the sort of release we feared would be given in a worst case scenario. The banks have gotten a huge “get out of jail free” card of bupkis.

It's gonna get worse.

Every time we get more information it's gonna get worse.

We are going to discover that this precludes all sorts of remedies for bad acts, and there will be no enforcement mechanisms to prevent future bad faith actions.

It's gonna be more extend and pretend, so the banksters can get their bonuses, and we get the shaft.