On Thursday, the Obama Administration and state attorney general's from across the nation announced a $25 billion settlement addressing servicing and foreclosure abuses by the country's five largest banks. The agreement will provide relief to many homeowners at risk of foreclosure, with Californians set to receive as much as $18 billion for principal reduction and refinancing opportunities for homeowners with negative equity, assistance to unemployed homeowners, and other initiatives to stem the foreclosure crisis in the state.
This multi-state mortgage settlement is a positive step forward for homeowners in California and across the country. Though limited in its reach, this agreement will help move us towards a more stable housing market and, in doing so, strengthen our economy.
I commend the Obama Administration, California Attorney General Kamala Harris, and state leaders for their hard work and their commitment to protect middle class families. Congress must remain vigilant and ensure that mortgage servicers hold up their end of the bargain so we can bring immediate relief to families who need it most.