Troubled Missouri home owners can expect a degree of relief from a national mortgage settlement that has been reached with five of the nation’s largest mortgage lenders.
The Show-Me State is being awarded more than $196 million of a $25 billion settlement with banks -- including Bank of America and JP Morgan Chase -- over allegations of lending abuses and improper foreclosure procedures.
Missouri Attorney General Chris Koster says the settlement does not close the door on possible criminal charges against mortgage lenders.
“It is a major step forward that at least addresses some of the wrong that has occurred over that period of time,” said Koster.
Koster says about 20,000 Missouri residents whose homes were foreclosed on will be eligible for $2,000 cash payments each. Borrowers who owe more than their homes are worth will be eligible for mortgage refinancing and a principle reduction of up to $20,000.
The Attorney General's office has set up a hotline to answer questions about who qualifies and how to make settlement claims.
