NY banks to contact troubled mortgage holders
ALBANY, N.Y.—New York's attorney general has reached a side agreement with two banks to reach out to homeowners with troubled mortgages related to February's 49-state settlement with the nation's five largest mortgage lenders to reform practices and provide up to $25 billion in relief.
Under the national settlement, Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial are expected to reduce loans for nearly 1 million households.
New York Attorney General Eric Schneiderman, who signed that settlement, also has an agreement with JPMorgan Chase Bank and Citibank saying they will proactively contact people with mortgages worth more than their New York property who are having trouble paying their loans and could be eligible for modifications.
Schneiderman spokesman Danny Kanner says about 10,000 homeowners should be affected.
