The nation’s 5 largest mortgage lenders — Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally — have finally come to a $25 billion, multi-state settlement. Colorado homeowners will receive $51.17 million of that, to be distributed for a variety of homeowner mortgage relief measures and foreclosure-prevention. Colorado Attorney General John Struthers said, “The settlement restores a measure of certainty to the Colorado real estate market.”
Attorney General Struthers emphasized that the $25 billion settlement is just one part of the litigation battle to right wrongs of alleged misconduct in the mortgage crisis. His office is involved in ongoing legal work to deal with loan origination irregularities, including the alleged practice of banks to use deceptive advertising and fraudulent paperwork to approve loans. There are similar legal proceedings going on at present with nine “second-tier” banks, as well.
The largest chunk of the $25 billion settlement will be used for supplemental loan-modification programs. Other major areas receiving funds will be affordable-housing programs, housing-counseling services through the state, Colorado legal services, temporary staffing at the Attorney General’s office, funding the Colorado Foreclosure Hotline through 2015, marketing and outreach efforts. For more information about the Colorado mortgage settlement with 5 major banks, read this interesting Denver Business Journal article by Heather Draper.
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