Connecticut will collect $190 million under a landmark settlement between states and the mortgage-servicing industry over abusive practices, authorities say.
Under the agreement, Bank of America, Citibank, JP Morgan Chase, GMAC and Wells Fargo, have agreed to pay 49 states combined $25 billion under a joint state-national settlement structure, Attorney General George Jepsen’s office said Thursday.
According to The Associated Press the deal also ends a separate investigation into Bank of America and Countrywide for inflating appraisals of loans from 2003 through most of 2009. Bank of America will pay $1 billion to settle that federal probe.
Oklahoma is the lone holdout and will receive no money
Reaction in Connecticut was immediate.
“The mortgage fraud settlement being announced today is a tiny drop in a big bucket,” the Connecticut Citizen Action Group said. “It does not do justice for the millions of homeowners who lost their homes or hold the banks fully accountable for their crimes. For homeowners who were defrauded and lost their homes, $2,000 is too little, too late. It is a paltry down payment toward full relief for homeowners.
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