Massive mortgage settlement to provide $15M for foreclosure services

New York /
Mar.March 28, 2012 12:00 PM

The mortgage settlement will provide $15 million for foreclosure prevention and other related services, according to a statement from the New York attorney general’s office today.

The allocation will provide up to $9 million for the state’s foreclosure prevention services program, which was set to expire April 1, and up to $6 million for community-based housing organizations, the statement said.

The $26 billion settlement reached in February between numerous state attorneys general and the country’s five largest mortgage servicers will afford New York State a total of $136 million. The balance of the funds goes toward direct relief, in payments of $1,500 and $2,000, to borrowers who have already lost their homes and in principal reductions for borrowers whose loans are serviced by the five major mortgage providers.

The settlement, formally filed just two weeks ago, has enraged some American homeowners because it applies only to about one million borrowers.

“Funding for legal services is an essential first step in bringing relief to the homeowners and communities that have been devastated by the crash of the housing market,” AG Eric Schneiderman said in the statement. — Guelda Voien


Related Articles

arrow_forward_ios
Reza Merchant and 555 Broadway (Google Maps, LinkedIn)
The Collective unloads Williamsburg dev site to avoid foreclosure
The Collective unloads Williamsburg dev site to avoid foreclosure
PS 64 at 605 East 9th St and MRC’s Josh Zegen (Google Maps, LinkedIn)
East Village’s languishing PS 64 nears foreclosure
East Village’s languishing PS 64 nears foreclosure
(Illustration by The Real Deal)
More than 14K LI residents in mortgage delinquency
More than 14K LI residents in mortgage delinquency
From left: Gary M. Tischler, founder and managing partner, Vanbarton Group; Eugene (Gene) Kohn, chairman, KPF (Getty Images, KPF, Google Maps/Illustration by Steven Dilakian for The Real Deal)
Vanbarton quietly taps KPF as NoMad tower architect
Vanbarton quietly taps KPF as NoMad tower architect
432 Park Avenue, Whitney Duan and Maverick Real Estate CEO David Aviram (432 Park, LinkedIn)
Lender suspicious of “missing” billionaire in 432 Park foreclosure
Lender suspicious of “missing” billionaire in 432 Park foreclosure
Steve Witkoff of Witkoff Group, Len Blavatnik of Access Industries and the XI (Getty, TheXI)
Witkoff and Access Industries buy HFZ’s languishing XI condo project
Witkoff and Access Industries buy HFZ’s languishing XI condo project
Gov. Kathy Hochul (Getty, iStock)
Hochul opens $539M homeowner assistance fund
Hochul opens $539M homeowner assistance fund
South Williamsburg resi project faces takeover by lender
South Williamsburg resi project faces takeover by lender
South Williamsburg resi project faces takeover by lender
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...