Most States Agree to 'Robo-Signing' Settlement

New York, NY, Feb. 7, 2012 -- Attorneys general from more than 40 states signed on to a proposed settlement agreement over so-called “robo-signing” foreclosure processing abuses.

The lead negotiator was Iowa Attorney General Tom Miller.

“This enables us to move forward into the very final stages of remaining work. Federal and state officials, as well as representatives from the banks, continue to address matters that they must complete before finalizing any settlement,” Miller said in a press release.

The deal is with Bank of America, Wells Fargo, Citigroup, JPMorgan Chase, and Ally Financial.

The settlement will reportedly total $25 billion, of which $17 billion would go toward writing down mortgage principal for an estimated 850,000 underwater borrowers, $3 billion could go toward restitution payments of $1,500 each to borrowers who lost their homes to foreclosure, and the rest could go to state funds for foreclosure relief, according to reports and estimates by Inside Mortgage Finance.

California and New York reportedly have not signed on to the deal.