As an effort to right several wrongs over the last few years these lenders will be paying restitution to those who were driven out of their homes by foreclosure initiated unreasonably by lenders. The end of a recent court battle brings the nation’s five largest mortgage lenders to pay out $25 billion to homeowners unlawfully foreclosed on.
Still in discussion over final terms and conditions, the proposed settlement could provide nearly 750,000 Americans with some closure. Although homeowners will not be able to get their homes back, many will receive monetary compensation for their troubles. The settlement is said to provide $1,800 checks for affected homeowners and up to $20,000 reductions in the mortgages of others.
The agreement has yet to be finalized and it is reported that the deal could reach upwards of $35 billion if additional lenders participate in the settlement. The deal is also working to revise industry standards by changing the guidelines for foreclosure, making it easier for those at risk to restructure their loans through loan modifications and other options.