How will the mortgage settlement affect New York?

ALBANY, N.Y. – New York is considered one of the big winners when it comes to the $25 billion mortgage settlement.

“New York per capita, per home is receiving the largest amount of money,” said Anthony Ianniello, an attorney in the Capital Region for over 40 years. New York is receiving $136 million, which is expected to help 6,400 home owners victimized by foreclosures.

Iannello broke it down to three components. “The component of principle production will allow those homeowners who qualify to have their principles reduced by approximately $20,000. The second component will be cash payments to homeowners who have had their homes foreclosed and the third component will be money sent to the states for them to conduct investigations and to have counseling for those who may be in the foreclosure process,” said Ianello.

At the other end of the settlement the five big banks responsible, Bank of America, JP Mortgage Chase, Ally Financial, Citigroup, and Wells Fargo, will be released from liability in regards to the investigation over whether or not they performed abusive practices.

“The banks will be able to regroup, the banks were almost in never-never land, with respect to proceeding with foreclosures, and investors with respect to banks will I think once again enter the market and be comfortable that all the earnings of banks are not going to go down the drain,” said Ianello.

If you are a victim of foreclosure the federal government will be contacting you within the next three to nine months regarding reimbursement.

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