California to get $18 billion under mortgage deal

Thu Feb 9, 2012 5:45pm EST

U.S. Attorney General Eric Holder (R) and U.S. Housing and Urban Development Secretary Shaun Donovan (at podium) announce February 9, 2012 in Washington that the federal government and 49 state attorneys general have reached a $25 billion agreement with the nation's five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. REUTERS/Gary Cameron

U.S. Attorney General Eric Holder (R) and U.S. Housing and Urban Development Secretary Shaun Donovan (at podium) announce February 9, 2012 in Washington that the federal government and 49 state attorneys general have reached a $25 billion agreement with the nation's five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses.

Credit: Reuters/Gary Cameron

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(Reuters) - California's attorney general said on Thursday her state will receive up to $18 billion in benefits under a federal-state mortgage settlement to be announced later today.

More than $12 billion will be used to cut mortgage debt for California's distressed homeowners and help with short sales, Attorney General Kamala Harris said in a statement.

U.S. Justice Department officials are expected to announce a $26 billion deal at 10 a.m. EDT (1500 GMT) on Thursday.

(Reporting By Aruna Viswanatha; Editing by Gerald E. McCormick)

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Comments (7)
Charles47 wrote:
A 25Bil settlement and CA is to get 18??? That does not pass the “smell test”?? Who are they kidding? NOT ME!

Feb 09, 2012 10:22am EST  --  Report as abuse
trex2561 wrote:
Wonder if the folks will have to show an i.d. to get the aid?

Feb 09, 2012 10:26am EST  --  Report as abuse
breezinthru wrote:
Nearly half of the settlement money goes to California?

Feb 09, 2012 10:46am EST  --  Report as abuse
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