TOPEKA, Kan. (AP) Attorney General Derek Schmidt says Kansas residents will share about $50 million of a $25 billion settlement reached between the federal government, states and several mortgage lenders.
The deal announced Thursday is the largest industry settlement since the 1998 multistate tobacco settlement.
Schmidt said the state’s share of the settlement would be direct payments to some homeowners who lost their homes to foreclosure.
Under the agreement, Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial will reduce loans for about 1 million households. They will also send checks of $2,000 to about 750,000 Americans, including about 4,000 Kansas residents, who were improperly foreclosed upon. The banks will have three years to fulfill the terms of the deal.