Pennsylvania Joins National Mortgage Abuse Settlement

A multi-state agreement with the nation’s five largest mortgage services over foreclosure abuses now includes Pennsylvania.   The settlement involves Ally, Bank of America, Citi, JP Morgan Chase and Wells Fargo.

The Commonwealth will get about 266 million dollars, including principal reductions for consumers struggling to avoid foreclosure, refinancing relief and payments to people who lost their homes. 

Attorney General Linda Kelly says it’s a 25 billion dollar national settlement over robo-signing and other abuses involving foreclosures and mortgage servicing.  She says the agreement also addresses breakdowns in the industry, provides new protection against abuse and allows prosecutors to pursue other mortgage-related misconduct.  

Kelly says the Attorney General’s Bureau of Consumer Protection has reviewed more than 5,200 mortgage-related complaints since 2008, when the current foreclosure crisis began.