"What the country and the housing market needs is a bold and broad fix - not broad immunity for banks' criminal behavior," George Goehl, executive director of community organizing group National People's Action, said in a statement. "Any settlement that is just about robo-signing should only release claims on robo-signing and nothing more. It should fix the servicing system and it should provide real relief to struggling underwater homeowners and those who have lost their homes."
The housing market has remained in a slump across the nation. The S&P/Case-Shiller 20-city index through November showed home values fell 3.7 percent from the previous year.
In January, the Federal Reserve's Federal Open Market Committee announced it expects to keep federal funds rate at zero to 1/4 percent at least through 2014, saying the housing sector remained depressed. The federal funds rate is the rate at which banks lend to each other overnight.