State and Federal officials announced a $25-billion settlement today with the country’s five largest mortgage servicers to address complaints of fraud and abuse in loan servicing and foreclosures. Iowa Attorney General Tom Miller has been in the thick of the negotiations on the settlement and was in Washington, D.C. today as the U.S. Attorney General made the announcement.
Miller released a statement saying Iowa’s share of the settlement is just over $40-million for relief, and to address future loan servicing. Miller says Iowa borrowers who lost their homes to foreclosure through abuse by loan providers between January of 2008 and December 31 of 2011, will be eligible for $7.4-million dollars in payments.
The statement also says the state will receive a direct payment of just over $15-million. Miller and others plan to talk with the media about the settlement in a conference call later today.