MONTGOMERY, Ala. (WIAT) - Relief is coming to Alabama borrowers as Attorney General Luther Strange joins a landmark $25 billion national joint federal-state agreement. The deal is with the largest mortgage servicers in the country. It's over foreclosure abuses and fraud as well as unacceptable nationwide mortgage servicing practices.
As a part of the agreement, $106,701,096 will be provided for relief to Alabama homeowners while also addressing future mortgage loan servicing practices.
"This agreement not only provides much needed relief to Alabama borrowers, but it also puts a stop to many of the bad behaviors that contributed to the mortgage mess in our state and across the country," Strange said.
The breakdown of Alabama's share of the settlement is:
- $29,879,070 - benefits to borrowers from loan term changes and other relief.
- $20,595,756 - borrowers who lost their homes to foreclosure between January 1, 2008 and December 31, 2011 and encountered servicing abuse.
- $29,751,516 - value of refinanced loans to Alabama's underwater borrowers.
- $26,474,753 - direct payment to the Attorney General's Office.
