Details of $26B Dollar Mortgage Settlement Due Out this Week

by 28 Feb 2012

WASHINGTON (CNNMoney) -- Final details are due out this week in the $26 billion settlement to help struggling homeowners and settle charges of abusive and negligent foreclosure practices, according to President Obama's housing chief. The Obama administration made a big announcement nearly three weeks ago, touting that 49 states had agreed on a deal with the five largest banks providing relief to homeowners who were victims of improper foreclosures. The relief would come in the form of principal reductions, mortgage refinancings and small payouts.

But so far, the only details made public have been what officials have said, as well as a few short summaries and fact sheets.

Department of Housing and Urban Development Secretary Shaun Donovan said in a Senate Banking hearing Tuesday that the deal will be filed in court later this week, making all the details public.

Donovan said that the earlier announcement revealed the "significant aspects of the agreement." He suggested that officials have been in minor negotiations with some states about, for example, how they planned to use their piece of the settlement.

He also said that federal officials had been in talks with other banks considering signing on to the deal.

"I would put it more in the dotting I's and crossing T's, rather than in the significant terms of the settlement that are being finalized," Donovan said of the lag between the announcement and release of the actual legal agreements.

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