National Mortgage Settlement Involving Feds, States and Banks Wraps Up

By Ben Lane

One of the vestiges of the financial crisis is now officially in the past.

The National Mortgage Settlement, the massive mortgage servicing settlement between the federal government, 49 states (all excluding Oklahoma), and five of the nation’s biggest banks and mortgage servicers, is now done and complete.

The National Mortgage Settlement is no more. RIP.

The settlement, which was originally announced on Feb. 9, 2012, required Bank of AmericaCitigroupJPMorgan ChaseWells Fargo, and ResCap (Ally Financial) to provide $20 billion in consumer relief and $5 billion in other payments.

The settlement stemmed from allegations that those companies were “robo-signing” mortgage documents, including allegedly signing swaths of foreclosure documents without properly reviewing them, evicting homeowners who were still in the modification process, and other abuses.

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