Robo-signing settlement will not be a game-changer

Whether or not President Obama uses tonight’s State of the Union Address to announce a final resolution to the robo-signing fiasco, it would appear that an agreement is close at hand. The good news is that the likely size of the settlement won’t force banks to reign in lending this year. But nor will principal reductions, which are likely to be required as part of the settlement, significantly reduce the overall amount of negative equity in the housing market.