Mortgage Settlements: Community Organizations

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  3. Mortgage Settlements: Community Organizations

The Attorney General obtained settlements from three major banks (Bank of America, Citibank, JP Morgan Chase) related to their marketing and sale of residential mortgage backed securities (RMBS). The RMBS settlements provide various forms of relief to consumers, including reductions in principal balances and reductions in interest rates. The RMBS settlements also provide benefits to community organizations for community development and housing counseling activities, including foreclosure prevention.

RMBS Settlement with Bank of America

The Bank of America RMBS Settlement includes funding for Critical Need Family Housing developments, donations to capitalize certified Community Development Financial Institutions, and donations to HUD-approved housing counseling agencies to provide foreclosure prevention assistance and other housing counseling activities. The Bank of America RMBS settlement may also provide donations to municipalities, land banks, non-profits, servicemembers with disabilities, and relatives of deceased servicemembers. For more information, please review Annex 2 of the Bank of America settlement agreement.

RMBS Settlement with JPMorgan

The JPMorgan RMBS Settlement includes funding to capitalize community equity restoration funds, or substantially similar community redevelopment activities. The JPMorgan RMBS settlement may also provide donations to municipalities, land banks, non-profits, servicemembers with disabilities, and relatives of deceased servicemembers. For more information, please review Annex 2 of the JPMorgan settlement agreement.

RMBS Settlement with Citibank

The Citibank RMBS Settlement includes funding for Critical Need Family Housing developments, donations to capitalize certified Community Development Financial Institutions, and donations to HUD-approved housing counseling agencies to provide foreclosure prevention assistance and other housing counseling activities. The Citibank RMBS settlement may also provide donations to municipalities, land banks, non-profits, servicemembers with disabilities, and relatives of deceased servicemembers. For more information, please review Annex 2 of the Citibank settlement agreement.