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Mortgage Servicing and Foreclosure Abuses
According to the NYBA, the federal government and 49 state attorneys general announced a $25 billion agreement with the nation’s five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. The agreement is intended to provide substantial financial relief to homeowners and establish significant new homeowner protections for the future.

As part of the settlement, New York State Attorney General Eric T. Schneiderman announced that $136 million would be provided to New York in penalties, direct relief to victims of wrongful foreclosure conduct, loan modifications including principal reductions for struggling homeowners, and funds that can be used to support foreclosure legal assistance and housing counseling programs. The settlement also imposes national standards for mortgage servicing and permits state attorneys general to bring legal action over misconduct that has not yet been investigated.