Ohio Attorney General Mike DeWine announces that Ohio is part of the joint federal-state settlement of $25 billion with five of the nation's largest mortgage servicers over foreclosure abuses, fraud, and unacceptable mortgage practices. The settlement is with the following mortgage servicers: Ally, Bank of America, Citi, JPMorganChase, and Wells Fargo.
Ohio's estimated share of the settlement is $335 million and can be broken down into four major areas for relief:
1. Ohio borrowers will receive an estimated total of $102 million in benefits from loan term modifications and other direct relief.
2. Ohio borrowers who lost their home to foreclosure from January 1, 2008 through December 11, 2011 and suffered servicing abuse would qualify for part of an estimated total of $44 million in cash payments.
3. The value of refinanced loans to Ohio's "underwater" borrowers would be an estimated total of $90 million.
4. The Ohio Attorney General's Office will receive an estimated $97 million to help with foreclosure prevention, revitalizing neighborhoods by getting rid of blighted properties, assistance to Ohio families who have experienced or are on the brink of foreclosure and the investigation and prosecution of mortgage rescue scam artists.
Additional Speaker: Sandy Lynskey, Consumer Protection Chief at the Ohio Attorney General's Office
February 9, 2012