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Ohio Participates in Foreclosure Abuse Settlement

Loans

Loans (Photo credit: jferzoco)

Ohio is one of forty-two states that have agreed to a $26 billion proposed settlement with the nation’s biggest mortgage lenders over foreclosure abuses.

The deal includes $1.5 billion for victims of wrongful foreclosure, $3 billion from a refinance program and $32.3 billion in homeowner benefits from loan changes.

Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial agreed to the settlement.

Many companies that process foreclosures failed to verify documents. Some employees signed papers they hadn’t read or used fake signatures to speed foreclosures, an action known as robo-signing.

The deal is the biggest involving a single industry since the 1998 tobacco deal. It forces the five largest mortgage lenders to reduce loans for about 1 million households, benefiting homeowners who are behind on their payments and owe more than their homes are worth.

Via The Dayton Daily News.

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