Wisconsin stands to receive at least $140 million, under a $25 billion federal-state deal with five major banks. The agreement announced Thursday was the result of claims lenders engaged in a pattern of foreclosure abuses, fraud, and deceptive mortgage practices.
Attorney General J.B. Van Hollen says much of Wisconsin’s share will help those hit by the scandal, with money going to consumers who were defrauded or who entered in to bad loans with lenders over the last three years.
The banks involved in the settlement are Bank of America, J.P. Morgan Chase, Citigroup, Residential Capital (Ally Bank) and Wells Fargo.
About $60 million of the state’s settlement money will be used to help modify loans, with another $31 million toward refinancing. Wisconsinites who lost their homes to foreclosure between 2008 and 2011 could also be eligible for up to $2,000 in compensation.
The state will also receive over $31 million directly, which will be used to set up additional relief programs, enhance future law enforcement efforts, and to create additional assistance programs for those hit by the foreclosure crisis.
AUDIO: Andrew Beckett reports (1:18)
