Four regional banks are facing pressure to reach their own settlement with state attorneys general over how they handled foreclosures. They’re accused of “robo-signing” — foreclosing on homes without getting the proper paperwork first.
The four second-tier mortgage servicers include Pennsylvania-based PNC Bank.
Bloomberg News reports representatives from the banks met with government lawyers last month about a settlement. A deal could pave the way for selling more foreclosed homes.
“It’s all about where these actual foreclosures are,” says Philadelphia real-estate broker Fred Glick, speaking about the potential for any regional impact.
In neighborhoods with healthy demand, he thinks more homes can be absorbed. Conversely, harmful effects also appear block by block.
“Big banks like PNC, they’re all over the country, so it isn’t really a regional problem when this happens,” Glick said.
Glick says such a deal would have the biggest impact in New Jersey, where legal battles kept foreclosures from moving ahead.