Cohen Statement on Nationwide Mortgage Settlement with Top Five Banks

WASHINGTON, D.C. – Congressman Steve Cohen (D-TN-9) today issued the following statement on today’s $26 billion settlement between the Attorneys General of 49 states, excluding Oklahoma, and the nation’s five largest mortgage lenders.

“Today’s settlement is a start towards addressing the root causes of the mortgage meltdown, but more needs to be done,” Congressman Cohen said. “The housing crisis has evaporated the wealth of middle-class homeowners and has reversed the financial gains made by homeowners in Memphis and Shelby County. I will continue to fight for legislation that ends predatory or deceptive lending practices.”

Tennessee Attorney General Bob Cooper has agreed to participate in the mortgage settlement agreement, which will provide an estimated $146 million in mortgage assistance loans to Tennessee homeowners. These funds are available to qualifying homeowners regardless of whether their mortgage is financed through the five participating banks: Bank of America, J.P. Morgan Chase, Citi, GMAC/Ally Financial, and Wells Fargo.

Eligible Shelby County homeowners who qualify for assistance may receive up to $25,000 toward current or past due monthly mortgage payments over an 18 month period. These payments are made directly to the loan servicer or lending agency. Homeowners in need of relief should contact their mortgage servicer directly to see if they are eligible. They can also speak to a foreclosure prevention counselor toll-free at (855) 690-4899 or visit the Tennessee Housing Development Agency’s Keep My Tennessee Home website at https://www.keepmytnhome.org/ for more information.