3 MORE STATES JOIN A NATIONWIDE SETTLEMENT OVER FORECLOSURE ABUSES

3 MORE STATES JOIN A NATIONWIDE SETTLEMENT OVER FORECLOSURE ABUSES

Arizona, Michigan and Florida, three of the states hit hardest by the housing crisis will join a nationwide
settlement, joining some 40 other states in a deal that will benefit many Americans who lost homes or can't
afford their mortgages.

The 3 states involvement buoys hopes that a full 50 state deal is imminent. 5 major states - California,
Delaware, Massachusetts, New York and Nevada are still considering whether to join the settlement.

The nationwide settlement stems from abuses that occurred after the housing bubble burst. Many firms
that process foreclosures failed to verify documents. Some employees signed papers they hadn't read or
used fake signatures to speed foreclosures.

The deal could be the biggest involving a single industry since a 1998 multi-state tobacco deal. It
would force the 5 largest mortgage lenders to reduce loans for about one million households.

The lenders will also send checks for about $2,000 to hundreds of thousands of people who lost homes
to foreclosures.

California's backing is particularly critical being the hardest hit in the foreclosure crisis. Homeowners in
states that opt out of the deal wouldn't share in the settlement money. The settlement could run as high
as $25 billion if all states approve the deal.

The lenders, Bank of America, Chase, Wells Fargo Citigroup and Ally Financial have agreed to the
settlement. In settling the charges, the states would not seek further civil action but could pursue criminal
investigations.

As of February 9, it has just been announced that a deal with 49 states has been finalized.