Massive mortgage settlement to provide $15M for foreclosure services

TRD 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
Governor Andrew Cuomo (Getty; iStock)

Commercial evictions, foreclosures halted through October

Commercial evictions, foreclosures halted through October
Tillary Hotel at 85 Flatbush Avenue (Image via Kutnicki Bernstein Architects)

Isaac Hager’s Downtown Brooklyn hotel heads to foreclosure

Isaac Hager’s Downtown Brooklyn hotel heads to foreclosure
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
U.S. foreclosure filings in August jumped 11% as some states ended relief measures, though continued government intervention has prevented sharper increase (iStock)

US foreclosure filings jump as some states end relief measures

US foreclosure filings jump as some states end relief measures
FHFA director Mark Calabria (Getty; iStock)

Fannie and Freddie extend eviction, foreclosure moratorium

Fannie and Freddie extend eviction, foreclosure moratorium
Matthew Kramer, Victor Petrescu, Sebastian Jaramillo and Gov. Ron DeSantis (Getty, iStock) 

Eviction, foreclosure freeze in Florida delaying inevitable flood of cases

Eviction, foreclosure freeze in Florida delaying inevitable flood of cases
The threat of eviction hangs heavily above immigrant families who have lost work as a result of the coronavirus pandemic. (Getty)

Eviction bans don’t always protect the most vulnerable

Eviction bans don’t always protect the most vulnerable
Governor Andrew Cuomo and New York Chief Administrative Judge Lawrence Marks (Getty)

New York courts put the kibosh on foreclosures

New York courts put the kibosh on foreclosures
arrow_forward_ios

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

Loading...