The Justice Department has announced it has reached a $25 billion dollar settlement in the mortgage lending scandals involving several U.S. Financial Institutions in which millions of families were affected. It is being called the largest civil settlement in United States history.
The State of Washington is expected to receive a share of approximately $648 million of the total $25 billion dollar settlement. Of this $648 millions, $455 million will go to assist homeowners with loan modification assistance and $70 million to assist homeowners who are “upside down” on their mortgages. additionally, families who lost their homes to foreclosure may be eligible for a one time payment and funds will go to a hotline to assist homeowners who are facing crisis.
This settlement finally ends to the government lawsuits over servicing misconduct and faulty foreclosure practices. Though a settlement has been reached, Federal and State authorities can still pursue charges with these institutions for mortgage fraud. The banks named in the settlement included Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial, (formerly known as GMAC).