Florida gets $8.4 billion in national foreclosure settlementby Dara Kam | February 9th, 2012
Florida will get $8.4 billion of a $26 billion nationwide foreclosure settlement reached following what U.S. Attorney General Eric Holder called “disturbing practices” at the country’s biggest banks.
Florida Attorney General Pam Bondi, a top negotiator for the states involved in the lawsuit, said prosecutors and banks had reached a deal that “provides Floridians with much-needed relief and reforms the mortgage-servicing industry.”
Under the agreement:
* Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction and other debt relief.
* About $170 million will be available for cash payments to Florida borrowers who lost their home to foreclosure from Jan. 1, 2008 through Dec. 31, 2011 and suffered servicing abuse.
* The value of refinanced loans to Florida’s underwater borrowers would be an estimated $309 million.
* The state will receive a direct payment of $350 million.
“This settlement will provide substantial relief to struggling Florida homeowners, and ensures that our state gets its fair share of the relief being provided nationally,” Bondi said in a statement this morning. “This agreement holds banks accountable and puts in place new protections for
homeowners in the form of strict mortgage servicing standards.”
Read more from The Palm Beach Post‘s Kimberly Miller here.