Iowa will see $40 million in historic mortgage settlement - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa will see $40 million in historic mortgage settlement

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DES MOINES (KWWL) -

An historic settlement between mortgage lenders and states over foreclosure abuses was reached Thursday. 

Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial agreed to pay the $25 billion to reimburse American homeowners and overhaul the mortgage industry.

Iowa is set to see more than $40 million. Iowa's Attorney General said Iowans will see the benefits in a few different ways. Iowa borrowers will receive nearly $6 million in benefits from loan term changes. People who lost their homes to foreclosure during 2008 through 2011 will qualify for more than $7 million in payments. 

The agreement will span a three year period. According to the Iowa Attorney General, borrowers may be contacted directly by one of the five included mortgage servicers regarding loan modification offers, others may be contacted by a settlement administrator or the attorney general. As more details are released you may need to contact your mortgage servicer for more information about specific programs and whether your loan qualifies.

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