Tennessee Gets $146 Million in Loan Abuse Settlement

Feb 9, 2012

MURFREESBORO, Tenn. (AP/WMOT) — Tennessee will receive 146 million dollars as part of a settlement with the nation’s five largest mortgage lenders over foreclosure abuses.

Federal officials say the lenders will pony up a total of $25 billion to be shared among 49 states. Oklahoma is the lone holdout.

State Attorney General Bob Cooper says the agreement menas som Tennesseans who haven’t been able to refinance troubled loans to date, may get a chance to do so. Others will have loan balances reduced on homes that are currently underwater. Some will be eligible for cash payments.

Here’s what Cooper had to say this morning about the agreement.

“Tennessee homeowners need the help now and an orderly resolution of these claims is in everybody’s interests. The benefits of settling today far outweigh benefits that might or might not be obtained after several years in court.”

Cooper says that money from the agreement will also be used to help all borrowers across Tennessee, whether or not their loans were serviced by the five settling companies.