After months of tough negotiations in court, several big banks were ordered to pay restitution for their role in performing unlawful foreclosures. JP Morgan Chase and Citigroup will pay close to $25 billion as part of a nationwide settlement agreement, just a few of the lender to be involved in the payout.
In or Out?
States have until Friday, February 3rd to formally accept the settlement terms. The agreement includes a payout to affected homeowners who were victimized by unlawful foreclosures. The deal also outlines a new set of procedures for mortgage lenders that specify how foreclosures are to be conducted and mandatory mortgage relief options for borrowers.
All 50 states participated in the investigation of mortgage fraud and unlawful practices back in 2010. Each state was represented by an attorney general in the negotiations, but each are now left to decide whether or not they will participate in the settlement. The decision will be up to state officials as their participation in the agreement as discussed at previous meetings. It is expected that not all states will accept the terms of the deal and pursue individual settlements on their own.