Billions Received in Mortgage Abuse Settlement

Billions Received in Mortgage Abuse Settlement

POSTED: Monday, November 19, 2012 - 3:10pm

UPDATED: Monday, November 19, 2012 - 4:06pm

More than 300,000 homeowners have received $26 billion in relief under the terms of the foreclosure abuse settlement.

The government says Bank of America, J.P. Morgan Chase, Wells Fargo, Citibank and Ally Financial have modified home loans, reduced interest rates and forgiven debt as part of the settlement.

The deal was reached last February between the banks, 50 attorneys general from 49 states and the District of Columbia, and the federal government.

It resolved allegations that banks used faulty paperwork to seize homes.

Among the worst abuses, using robo-signers to sign thousands of legal documents in which they attested to facts they had no knowledge of.

Local attorney, Richard Roman, says within the last month up to seven of his clients have received letters from the Federal Reserve System saying they may be eligible for some of that compensation.

But they have to choose between that money, and continuing on with their own lawsuits.

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