Hawaii joins $25B mortgage servicing settlement

AP News
Posted: Feb 10, 2012 10:18 AM
Hawaii joins $25B mortgage servicing settlement

Hawaii has joined what's being called a landmark $25 billion federal-state agreement with the nation's five biggest mortgage servicers.

Hawaii Attorney General David Louie said Thursday the state is sharing in a settlement for foreclosure abuses and fraud committed by banks against homeowners.

The banks involved in the agreement include J.P. Morgan Chase, Wells Fargo, Bank of America, Citigroup and Ally Financial.

Louie says this agreement is a good deal. He says it will give real relief and money to struggling Hawaii homeowners.

Officials say the state's estimated share of the settlement is $71 million. This includes about $8.2 million in relief funds for Hawaii homeowners.

The agreement also addresses reforms for future mortgage loan practices.