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Doug Gansler ::: Attorney General
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Hunter,

Today I joined 49 other state attorneys general in a $25 billion settlement with the five biggest mortgage servicers that will bring close to $1 billion in relief to struggling Maryland homeowners -- the largest joint state-federal settlement in United States history. In addition to requiring the banks to pay for their misconduct, the settlement also requires them to adopt comprehensive reforms of their mortgage servicing practices that will likely become a template for improved mortgage servicing across the industry.

Under this historic settlement, the five big banks - Bank of America, Citi, JP Morgan Chase, Wells Fargo, and Ally (formerly GMAC) - have agreed to:

pay restitution to Maryland borrowers who lost their homes in connection with mortgage servicing abuse;

implement homeowner assistance programs for Maryland borrowers who are behind on their mortgages, including principal reductions through loan modifications; and

offer refinancing options for Maryland borrowers who are current in their mortgage payments but underwater.

This relief will make a real difference in the lives of thousands of Marylanders, and to the extent it helps the housing market recover, it will benefit thousands more.

The agreement will have the force of a federal judge, an independent monitor, and 50 attorneys general behind it, along with the threat of a substantial penalty for failing to meet their obligations under this agreement.

Importantly, this settlement does not release the big banks from criminal liability whatsoever and offers no immunity from securitization claims, fair lending claims, and other fraud not related to mortgage origination and servicing (like "robo-signing"). People should expect to see further action from our office.

This settlement is an important step toward lasting reform of the mortgage industry, but it is a first step. My team is working around the clock to make sure that wrongdoers pay, and that homeowners get the justice and relief they deserve.

Douglas F. Gansler


P.S. - To find out more details of the settlement, visit www.oag.state.md.us


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Friends of Doug Gansler, P.O. Box 31102 Bethesda, MD 20824
By authority of "Friends of Doug Gansler." Hon. Joseph D. Tydings, Chair; Anne Clark Christman, Treasurer

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