Washington, DC – U.S. Senator Sheldon Whitehouse (D-RI) released the statement below regarding today’s announced $25 billion settlement between federal authorities, 49 states, including Rhode Island, and the five largest mortgage servicers: Ally Financial, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Rhode Island is expected to receive a total of $172 million under the settlement, which addresses claims that the banks used improper foreclosure practices such as “robo-signing” documents.
“Too many families in Rhode Island and throughout the country have been hurt by a broken mortgage servicing system fraught with long waits on the phone, lost paperwork, and no one to speak with who’ll give their last name or make a decision. Today’s settlement should help remedy illegal foreclosure practices, and provide some relief to struggling homeowners. We have more work to do to fully address our nation’s foreclosure crisis and help families in need, but this is a positive step.”
Whitehouse has been a strong advocate for efforts to address the nation’s foreclosure crisis. He helped secure nearly $80 million for Rhode Island through the Obama Administration’s Hardest Hit Fund, which so far has helped nearly 1,500 Rhode Island homeowners avoid foreclosure. He has also supported efforts to expand a federal mortgage refinancing program and introduced legislation to clarify the authority of bankruptcy courts to run mortgage modification programs.
