Kansas To Receive $50 Million In Mortgage Settlement

Fri, February 10, 2012

KPR

Kansas will receive about $50 million from a multi-billion dollar settlement over improper actions by mortgage lenders. The settlement is between the states, the federal government and five mortgage banks. Attorney General Derek Schmidt announced the state’s portion of the agreement Thursday.

“This settlement is not going to help every homeowner who suffered foreclosure, and it doesn’t resolve every claim of misconduct against lenders or mortgage servicers,” Schmidt said. “But this settlement is a dramatic step forward that will help many Kansans.”

Under the settlement, the lenders will send checks for $2,000 to homeowners who were improperly foreclosed upon. There should be about 4,000 Kansas households eligible for the payments. Homeowners may also be eligible for refinancing or other assistance if their property is now worth less than they owe. The banks have three years to fulfill the terms of the agreement.