Thursday, February 9, 2012
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WASHINGTON UPDATE: Georgia and 48 other states have reached a $25 billion deal with major lenders who have agreed to reduce mortgage loans and reimburse customers who became victims of overzealous foreclosures.
The banks involved include Wells Fargo, Bank of America, JPMorgan Chase, Citigroup and Ally Financial.
The deal would mean loan reductions for nearly 1 million U.S. households and $2,000 checks to about 750,000 homeowners who were the victims of improper foreclosures.
Georgia's share of the settlement would be more than $814.7 million. The number of homeowners or former homeowners affected was not immediately available.
Georgia had the fourth highest rate of foreclosure filings in the U.S. last year -- one in every 37 homes, according to RealtyTrac.
Earlier:Federal officials say the five largest mortgage lenders have reached a $25 billion settlement with 49 states over foreclosure abuses that took place after the housing bubble burst. They will have three years to fulfill the terms of the landmark deal announced Thursday.
The deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009.
Bank of America will pay $1 billion to settle that federal probe.
Oklahoma is the lone holdout and will receive no money.