$25 billion foreclosure settlement finalized

The record-setting deal involves five major lenders and 49 states, leaves banks open to future investigation

Years after the onset of the housing crisis, a record $25 billion foreclosure abuse settlement was reached between 49 state attorneys general and the country’s five largest mortgage lenders.

Payments from Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo will aid borrowers in need of loan modifications, compensate homeowners who lost their houses to foreclosure and fund state consumer protection programs. Homeowners from Oklahoma, the lone hold-out, will not be eligible for benefits.

Alanna Byrne

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