AG Jepsen to explain mortgage deal

Associated Press

Updated: Feb 21, 2012 5:17 AM

HARTFORD, Conn. (AP) — Connecticut lawmakers will be briefed on the details of a $25 million settlement of a multi-state lawsuit against the nation's five largest mortgage servicers.

Attorney General George Jepsen is scheduled to discuss how the agreement affects Connecticut during a special hearing of the General Assembly's Banks Committee on Tuesday. He was invited by the committee's co-chairmen, Sen. Robert Duff of Norwalk and Rep. William Tong of Stamford.

Under the terms of the settlement, Connecticut homeowners and the state will receive more than $190 million, due to the servicers' alleged foreclosure abuses and fraud, as well as unacceptable mortgage servicing practices.

The U.S. Justice Department announced the agreement with Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial last month. They've also agreed to overhaul their industry.

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 This material may not be published, broadcast, rewritten or redistributed.

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