New York Settles Mortgage Debt Troubles

: Chris Lee Law Firm

  Filed under: Mortgage

mortgage settlementAfter the announcement last week of the first ever joint state-federal mortgage settlement, some states have been given a larger share of the settlement. Out of the $25 billion settlement proposal states such as New York will stand to gain one of the largest percentages of the payout.

Another Settlement Agreement

New York Attorney General Eric Schneiderman announced that the state will receive a $136 million settlement for homeowners. As one of the nation’s leading states for underwater borrowers New York will receive a massive portion of the overall payout, the fourth highest amount among states. The plan for New York is to allocate a large portion of the money towards principal reductions for underwater mortgages and a smaller portion in the form of payment for those underwater in mortgage debt.

Over the next three years, the $25 billion settlement will be paid out by lenders in the following ways:

  • Ally Financial, Inc. — $110 million in payments, $200 million relief.
  • Bank of America Corp. — $3.24 billion in payments, $8.58 billion in relief.
  • Citigroup, Inc. — $415 million in payments, $1.79 billion in relief.
  • J.P. Morgan Chase & Co. — $1.08 billion in payments, $4.21 billion in relief.
  • Wells Fargo & Co. — $1.01 billion in payments, $4.34 billion in relief.

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