The Florida Attorney General’s Office declared that Bank of America will be providing a billion dollars for relief. It will go to approximately 17,000 Floridians over a settlement for mortgage security fraud. Bank of America Corp paid $16.65 billion to finalize the investigation; for the sale of harmful mortgage securities by federal, Florida. And, other states during the housing bubble. The homeowners and communities that were the most affected during the Recession will get the assistance of $7 billion. Meanwhile, the other $9.65 billion will be in fines.
Besides this being the largest settlement in history, the Attorney General also described it as going beyond the cost of doing business. The Attorney General’s spokesperson stated that all the particulars of how much and who will be receiving the assistance are still being worked out. Loan modifications, principal reduction and forgiveness, and new loans to borrowers with worthwhile credit. All will be part of the relief consumers will get. Communities that are still recuperating from the recession will receive donations. And, others will get rental housing whose finances are affordable.
Of the $7 billion settlement, a seventh will go to Florida. Its purpose is to help homeowners and communities who were the most affected during the financial crisis. The firms Merrill Lynch & Co and Countywide Financial Corp did the majority of the toxic loans. Bank of America attained these firms in 2008.
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