Attorney General Chris Koster explained the settlement at news conferences across Missouri on Thursday. (PoliticMo Photo)
JEFFERSON CITY, Mo. — A national settlement deal with the nation’s top mortgage banks could mean benefit major benefits for Missourians who were victims of foreclosure abuses, unfair mortgage servicing practices, and fraud, said Missouri Attorney General Chris Koster.
Hours after the deal was signed Thursday morning, Koster made media appearances in Kansas City, St. Louis, and Jefferson City to promote the impact for affected Missourians.
“This settlement is in the best interest of Missouri,” Koster said, “as we emerge from this financial crisis.”
Missouri received $196.8 million from the banks. Nearly $85.5 million will go to homeowners at risk of foreclosure, $38 million will be used for homeowners whose houses are worth less than they’re paying, $31 million for homeowners harmed by improper foreclosures, and $41.43 million will go directly to the states. (Gov. Nixon has already announced he will use that to begin to fill the gap in higher education funding.)
Koster also said he and 48 other attorneys general have been in 18 months of negotiations for a settlement with Bank of America, Citigroup, JP Morgan Chase, Wells Fargo, and Ally Financial, the nation’s top mortgage lending banks.
Koster said the bipartisan nature of the settlement — led by attorneys general of both parties — “underscores the importance” of the $26 billion settlement, which he said is the biggest since a massive lawsuit was settled with the nation’s largest tobacco companies in the 1990’s.
“The fact that we have brought it to a conclusion is a great thing for this state,” Koster said.
While this piece of litigation is settled, new litigation by the state, homeowners, or individuals affected is not limited.
“One item I insisted on in this agreement is that this settlement would not rule out state or federal criminal procedures,” he said.
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