The Associated Press February 10, 2012, 10:15AM ET

Mo. to get $196M from national mortgage settlement

Missouri will receive more than $196 million from a national settlement over home foreclosure abuses among most states, the federal government and mortgage lenders.

The banks involved include Ally Financial, Bank of America, Citi, JPMorgan Chase and Wells Fargo.

Borrowers who lost homes through foreclosure from 2008-2011 and suffered servicing abuse will get a roughly $2,000 cash payment, which will cover about $31 million. Another $38 million will be for refinancing for people who are current on their mortgages but whose homes now are worth less than what they owe. An additional $86.5 million will be used to reduce the principal for people who are behind on their mortgages but could afford to make payments at a reduced rate.

State government also receives $41 million. Earlier this week, Gov. Jay Nixon proposed using nearly all that to soften a budget cut for colleges and universities.


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