(Associated Press/Houston Chronicle)
WASHINGTON – U.S. states have reached a $25 billion deal with the nation’s biggest mortgage lenders over foreclosure abuses that occurred after the housing bubble burst.
Federal and state officials announced the deal Thursday. It is the biggest settlement involving a single industry since a 1998 multi-state tobacco deal.
Under the agreement, five major banks – Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial – will reduce loans for nearly 1 million households. They will also send checks of $2,000 to about 750,000 Americans who were improperly foreclosed upon. The banks will have three years to fulfill the terms of the deal.
Texas Attorney General Greg Abbott said in a statement that Texas homeowners should receive almost $287 million to help restructure existing mortgages and for payments to certain borrowers who lost homes due to servicing abuses.
(Read more at the Houston Chronicle)
Related Coverage:
- Mortgage Plan Gives Billions to Homeowners, but With Exceptions (New York Times)
- FAQ: The Foreclosure Settlement (Washington Post)
- Texas’ Slice of Mortgage Deal is Just a Drop in the Bucket (Houston Chronicle)
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OPINION:
- Foreclosure ‘Robo-signing’ Deal is Rough Justice (Washington Post)
- The Link Between Education & Workforce Success: If You Can Measure It, You Can Improve It (Houston Culture Map)