National Mortgage Settlement: States, Big Banks Reach $26 Billion Deal

Source: The Huffington Post

The government announced Thursday a $26 billion deal with five of the nation’s largest banks to settle charges of systemic and widespread mortgage fraud.

The deal would be the largest mortgage settlement ever.

The settlement, 16 months in the making, could bring significant relief to those in danger of losing their homes and also much needed stability to the long-suffering housing market.

Those who already lost their home, however, would receive just the smallest fraction of the money: a one-time cash payment of up to $2,000 as compensation. “Their entire lives have been turned upside down and changed,” said Philip Robinson, the acting executive director of Civil Justice, a Baltimore-based nonprofit that has worked with thousands of Maryland families fighting for their homes.

In a call with reporters on Thursday morning, senior officials at the Justice Department said there would also be other remedies for the foreclosure victims.

To read this article in its entirety visit The Huffington Post.