AG signs on to $25B mortgage settlement

RICHMOND, Va. (AP/WAVY) - Virginians and home borrowers in the state will receive about $479.6 million in relief from a $25 billion settlement between states and five mortgage lenders over foreclosure abuses.

Federal and state officials announced the deal Thursday. Oklahoma is the only state that didn't agree to the deal.

Attorney General Ken Cuccinelli says the banks will make cash payments totaling more than $31 million to Virginians who experienced foreclosure abuses from Jan. 1, 2008 to Dec. 31, 2011.

Under the agreement, the banks also will modify loan terms and provide other relief to Virginia home borrowers. Cuccinelli says this relief totals more than $409 million.

The banks will pay the state more than $69.6 million.

The banks are Bank of America, JPMorgan, Chase, Wells Fargo, Citigroup and Ally Financial.

Borrowers should contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement. The toll free numbers for the settling servicers are:

• Bank of America: (877) 488-7814
• Citigroup: (866) 272-4749
• J.P. Morgan Chase: (866) 372-6901
• GMAC: (800) 766-4622
• Wells Fargo: (800) 288-3212

Click here for more information on the proposed agreement.