Federal Government and 49 States Enter into $25 Billion Mortgage Servicing Settlement
Febrary 13, 2012
On Thursday, February 9, 2012 the federal government and 49 states entered into a settlement dealing with the mortgage servicing issues emanating from the foreclosure crisis of the last few years including the "robo-signing" scandal. The $25 billion agreement with Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc. (formerly GMAC) is designed to provide eligible homeowners with some relief and prevent future abuses. The settlement requires banks to do a number of things including reducing the principal balance on many loans, refinancing loans for underwater borrowers, and paying billions of dollars to states and victims. The settlement will take some time to implement and people are cautioned that it will not be immediately known who is eligible for relief. The only state not to participate is Oklahoma. For more information click out the link to the settlement website below.