Court papers were filed Monday to complete the $25 billion settlement between Connecticut and other state with five of the nation's biggest mortgage servicers over alleged foreclosure misconduct, authorities say.
Attorney General George Jepsen said the papers, among other things, outline the terms and conditions the lenders must meet as part of the settlement announced Feb. 9.
It is the biggest mortgage-abuse settlement in U.S. history.
Comprehensive new servicing standards for mortgage loans were among the documents filed in U.S. District Court in Washington, D.C., as part of the settlement agreement with Bank of America Corp., JP Morgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc., formerly GMAC.
Meanwhile, Jepsen says Connecticut Assistant Attorneys General Matthew Budzik and Joseph Chambers and other states' attorneys general met last week to plan the next phase of investigations into issues such as securitization, credit-rating agency practices and mortgage electronic recording services, among others, that contributed to the financial crisis but were not resolved by the mortgage foreclosure settlement.
Those investigations focus on how mortgages were securitized on Wall Street; third-party vendors used by banks; potential claims by state pension funds and deceptive marketing of securities, among other issues.