Friday, February 24, 2012

Tennessee Joins Agreement with Major Financial Institutions

Tennessee will participate in the $25 billion agreement with the nation’s five largest mortgage servicers, according to Attorney General Bob Cooper. The agreement arises from an investigation into unacceptable nationwide mortgage servicing and foreclosure practices. The servicers participating in this agreement, which was announced today, are Bank of America, J.P. Morgan Chase, Citi, GMAC/Ally Financial, and Wells Fargo.

Once approved by the court, the agreement will provide an estimated $146 million in relief to Tennessee homeowners and addresses future mortgage loan servicing practices.

“This agreement avoids protracted and costly litigation while providing significant and tangible relief to distressed homeowners,” said Cooper. “The benefits of this agreement today far outweigh the possible benefits that might be obtained after several years in court. Homeowners need the help now and an orderly resolution of these claims is in everyone’s interests.”

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