A federal judge has signed off on the $25 billion settlement among banks, federal agencies, and the state attorneys general from 49 states and the District of Columbia.
The settlement was announced in February and filed in court as a consent judgment last month. Judge Rosemary Collyer approved the landmark settlement Wednesday. The signed order was filed in U.S. District Court for the District of Columbia.
The pact will offer reductions in loan principal and other assistance to qualifying homeowners. The largest portion of the aid, valued at $17 billion, goes to borrowers at risk of foreclosure. Banks will pay $5 billion in fines, including nearly $1 billion to the Federal Housing Administration.
The final order says nothing in the consent judgment can constitute evidence against the five banks that agreed to the deal: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co.
The signed agreement was entered in court and made public Thursday. Bond investors had grumbled over some of the deal’s terms, with one trade group hinting at a potential legal challenge.
The Associated Press
