Hawaii To Get $71 Million In Foreclosure Abuse Settlement
Hawaii Among 49 States To Agree To $25 Billion Settlement With 5 Banks
The state is getting $71 million dollars as part of a foreclosure abuse settlement.
Hawaii is among 49 states that agreed to a $25 billion settlement with five of the country's largest mortgage providers in the wake of foreclosure abuses and fraud.
"Everybody knows what kind of mess the banks created with their bad servicing standards, their fraud, their runaround and all of the, 'Oh gee, I'm sorry we can't help you,' kind of attitude,'" said state Attorney General David Louie.
The state's $71 million settlement comes from the joint state and federal $25 billion settlement with five banks: Bank of America, J.P. Morgan Chase & Co., Wells Fargo, Citigroup and Ally Financial.
Of Hawaii's $71 million settlement, $50 million will go toward loan modifications, Louie said.
"That's where the banks will lower the amount of the mortgage to help make these mortgages more affordable," Louie said.
Another $9 million will go to refinancing relief for homeowners who are underwater on their mortgages, Louie said.
And $3.2 million will go toward homeowners who were improperly foreclosed upon, making them eligible for up to $2,000 each.
"I do not mean to suggest in any way that $2,000 would be adequate compensation for losing their house," Louie said.
Another $8.2 million will be put into a trust and eventually be used for services such as credit counseling and mediation.
The deal prevents the state from suing the banks, but does not prevent homeowners from suing mortgage providers who improperly foreclosed on them.
The settlement also does not protect the banks from criminal liability.
Oklahoma was the only state that did not agree to the deal.
For more information on the settlement and how you can get your share if you were improperly foreclosed on, go to the AS SEEN ON section of this website or to http://www.nationalmortgagesettlement.com.
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