Photo: Andrew Scott/Flickr
Well, this mini-chapter in the ongoing effort to get banks to pay for faulty mortgage processing is over.According to NYT, banks and various state AGs (likely including California and New York) will announce tomorrow that major banks will pay a $25 billion settlement, with money going in various ways to help homeowners.
Still, the agreement is the broadest effort yet to help borrowers owing more than their houses are worth, with roughly one million expected to have their mortgage debt reduced by lenders. In addition, 300,000 homeowners are expected to be able to refinance their homes at lower rates, while another 750,000 people who lost their homes to foreclosure from September 2008 to the end of 2011 will receive checks for about $2,000.
The final details of the pact were still being negotiated Thursday night, including how many states would participate and when the formal announcement would be made in Washington.
Obviously more details to come tomorrow.