UPDATE: Missouri to Receive Nearly $200 Million in Mortgage Settlement
JEFFERSON CITY - Attorney General Chris Koster announced today that Missouri will receive $196 million out of a national $25 billion settlement with the nation's five largest lenders.
Those five banks are Bank of America, Wells Fargo, Ally Financial, JPMorgan Chase, and Citigroup. The settlement was on charges the banks used "shady" methods in the foreclosure of homes during the housing crisis, such as fake signatures.
Breaking down the $196 million:
- $38 million will go to homeowners who are current on payments, and currently owe more than their home is worth.
- $86.5 million will help homeowners who are behind on payments and currently owe more than their home is worth. This will bring principal reductions and other borrower assistance programs.
- $31 million will go to borrowers who lost their homes in foreclosure from Jan. 1, 2008 to Dec. 31, 2011, and suffered servicing abuse. Each borrower will receive roughly a $2000 payment.
- $40 million will go to the state, which Gov. Nixon has said he will use to restore funding to public colleges and universities.
The settlement does not rule out the possibility of criminal prosecutions against the banks.
Koster said he is in the process of training 10-15 attorneys in the next 30 days to inform Missourians.
The Missouri Attorney General's Office launched a special hotline for consumers to get more information--that number is 855-870-7676. For more information on the settlement, visit: