Proposed reforms to the foreclosure practices of banks across the US are moving closer to implementation, it has emerged.
Talks between American states regarding this area of the financial sector have been ongoing for more than a year as regulators seek to put measures in place to stop any repeat of the housing market collapse that took place during the global economic downturn.
And these rule changes look set to go through sooner rather than later as California, Florida and New York have all now given their backing to the legislative alterations.
A source told Business Week this agreement could be worth up to $39 billion to the industry as it will change foreclosure regulations and Kurt Eggert, a professor at the Chapman University School of Law, added it is a "huge deal" that California and New York have signed on.
This comes after several experts told the Financial Times they believe the removal of credit ratings from regulatory requirements may negatively affect the country's housing market.
By Asim Shah
