Robo-signing settlement could provide broad relief for homeowners, but an overly broad release of liability could undermine benefits

Chicago, IL – September 8, 2011 – (RealEstateRama) — With home values continuing a steep decline, little change in the unemployment rate, and 26 percent of Illinoisans owing more than their home is worth, little has been done to buoy confidence that an economic recovery is at hand. A settlement of the investigations surrounding last year’s robo-signing scandal that, among other things, achieves widespread principal reduction commitments from major servicers, could change that–but only if done carefully.