Iowa to get $40 million from mortgage settlement

Published On: Feb 10 2012 08:43:25 AM CST   Updated On: Feb 10 2012 08:43:47 AM CST

DES MOINES, Iowa (AP) -- Iowa is set to see more than $40 million from a $25 billion settlement between mortgage lenders and states over foreclosure abuses.

Iowa Attorney General Tom Miller said Wednesday Iowa borrowers will receive nearly $6 million in benefits from loan term changes, and borrowers who lost their homes to foreclosure as part of abusive practices from 2008 through 2011 will qualify for more than $7 million in payments.

The settlement also says the value of refinanced loans to Iowans who are underwater on their mortgages is estimated at nearly $12 million.

Miller says more than $15 million will go to state coffers.

Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial agreed to pay the multi-billion dollar settlement to reimburse American homeowners and overhaul their industry.