The President Barack Obama Administration and 49 States announced a record $25 billion mortgage settlement with the nation’s five largest banks, the latest attempt to help homeowners and stop the still-sagging housing market’s drag on the economy, The Washington Times reported.
According to the newspaper, the deal stems from an investigation into foreclosure fraud that was launched in 2010 and is the largest Federal-State civil settlement involving one industry since the 1998 tobacco agreement.
The Times reported that the deal aims to benefit nearly 2 million current and former homeowners who were harmed by abusive mortgage and foreclosure practices during the housing boom and bust that occurred over the past decade.
Obama thanked Democratic and Republican attorneys general across the country for their work on the settlement.
“It cost more than 4 million families their homes to foreclosure,” Obama said in the announcement. “These practices were plainly irresponsible, and we refused to let them go unanswered.”
Fox News reported that about 750,000 Americans who were foreclosed upon will receive checks of $2,000 and the banks will have three years to fulfill the terms of the deal.