Thursday, February 9, 2012

Thousands of Idahoans to Benefit From Landmark Mortgage Settlement

Posted By on Thu, Feb 9, 2012 at 11:04 AM

A landmark $25 billion nationwide mortgage settlement is expected to affect thousands of Idahoans. The agreement among the nation's biggest banks and federal and state authorities could provide relief to nearly 2 million current and former homeowners harmed by the bursting of the housing bubble.

Under the plan, $17 billion will go toward homeowner relief, $5 billion will be divided in cash payments to states and federal authorities, and approximately $3 billion will go for refinancing. There are extra incentives for banks to distribute the money in the next 12 months.

Lending insitutions involved in the agreement include Bank of America, Citi, J.P. Morgan Chase, Ally and Wells Fargo banks.

More than $99.8 million has been earmarked for direct relief to Idaho homeowners whose mortgages were owned and/or serviced by any of the five settling banks. Approximately 5,000 Idaho borrowers lost their homes to foreclosure between Jan. 1, 2008, and Dec. 31, 2011, because of substandard servicing practices. It's estimated that the average borrower could receive $1,500 and $2,000 in relief.

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