$200 million to help CT residents

WTNH TV

Updated: Feb 10, 2012 8:17 PM

HARTFORD, Conn. (WTNH) — That big mortgage scandal settlement announced yesterday in Washington is expected to help thousands of Connecticut residents.

Almost $200 million in the mortgage scandal settlement will be used to help Connecticut homeowners drowning in loans, and those who lost their homes within the last three years.

Five of the nation's biggest banks, including Bank of America, Citibank, and Wells Fargo are part of the deal negotiated in part by Connecticut Attorney General George Jepsen.

"Thousands of people in Connecticut will qualify under this program for a lower rate, and that will put cash in their pockets that they will spend in Connecticut's economy," said Jepsen.
     
In exchange for the 'robo signing scandal' where the big banks had phony vice presidents signing thousands of foreclosure documents they never read, the $25 billion will go toward helping some existing mortgage holders reduce their payments by renegotiating their loan balance.
    
Connecticut's piece of that pie will be just under $200 million, $36 million to refinance existing, high interest loans, $27 million will go to state run foreclosure prevention programs, and about $11 million in cash payments estimated to be around $1,500 to people that lost their homes.

"The overwhelming majority of people who lost their homes in the last three or four years, and who qualify for this payment of call it $1,750 plus or minus a couple of hundred bucks would have lost their homes regardless," said Jepsen.

"It's a vast improvement from the way that foreclosure markets were proceeding, and it's going to significantly help the problem that we have," said Commissioner Howard Pitkin of the CT Department of Banking.

Pitkin said his office is working on similar settlements with some of the smaller banks, and hopes to have an agreement within the next few months.

To see if you qualify for this mortgage relief call:

Bank of America 877-488-7814
Citibank 866-272-4749
Chase 866-372-6901
GMAC 800-766-4622
Wells Fargo 800-288-3212

For more information click here.

Copyright 2012 WTNH TV. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Political Pulse