Massive settlement to help Mid-South homeowners - Action News 5 - Memphis, Tennessee

Massive settlement to help Mid-South homeowners

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It's the largest, joint state/federal settlement in U.S. history and now the U.S. Secretary of Housing and Urban Development is visiting cities around the country explaining how the money will benefit homeowners. It's the largest, joint state/federal settlement in U.S. history and now the U.S. Secretary of Housing and Urban Development is visiting cities around the country explaining how the money will benefit homeowners.
MEMPHIS, TN -

(WMC-TV) - It's the largest, joint state/federal settlement in U.S. history and now the U.S. Secretary of Housing and Urban Development is visiting cities around the country for discussions about how the money will benefit homeowners caught up in the foreclosure crisis.

Minutes after explaining the settlement to mid-south leaders, U.S. Secretary of Housing and Urban Development Shaun Donovan spoke at a news conference on ways it will affect homeowners.

"As you've heard, it provides tens of billions of dollars worth of help through principal reductions, re-financing, blight assistance for communities that are hard hit," said Donovan.

The federal settlement money will come from five of the nation's largest banks, all of which faced charges of improper lending and other activities that lead to the mortgage crisis which caused thousands of people to lose their homes.

"However, we know this is just a start," said Dustin McDaniel, Arkansas' attorney general. "State attorneys general are investigating other services and we are monitoring parties to this settlement to insure they live up to their end of the bargain."

Attorneys General for Arkansas and Tennessee also weighed in on the multi-billion dollar settlement.

"In fact, the agreement will provide an estimated $144 million in benefits to Tennessee homeowners," said Tennessee Attorney General Robert Cooper.

A substantial amount of those benefits will flow directly to eligible homeowners whose loans are owned and serviced by the five settling banks.

Those benefits will take the form of principal reduction, re-financing, loan modification and other relief.

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