Settlement Does Not Apply To ‘Mortgage Practices Industry Wide,’ American Bankers CEO Says

The $25 billion mortgage foreclosure settlement “marks an important milestone in resolving mortgage concerns, allowing these five institutions – essential providers of mortgage services across the country – to look to the future with clarity and commitment to customers," according to a statement by Frank Keating, the president and CEO of the American Bankers Association.

Keating added that the ABA “is evaluating the full settlement to ensure its enforcement does not further constrain credit availability and that its terms are not applied outside this agreement.” Moreover, Keating emphasized that the settlement “addresses a distinct group of mortgages offered during a specific timeframe. It would be a mistake to regard the settlement as applying to mortgage practices industry wide."