Help for Homeowners: Mortgage Settlement

On February 9, 2012, the federal government, 49 states including Wisconsin, and the nation’s five largest mortgage servicers agreed to a $25 billion settlement over foreclosure abuses perpetrated against American homeowners. The settlement represents the second largest civil settlement ever obtained by the state attorneys general. Wisconsin will receive an estimated $140 million that will go toward direct relief to affected homeowners, refinancing benefits for eligible borrowers, and remediation programs and services.

Congresswoman Baldwin believes this is a good first step toward making defrauded homeowners whole and reforming our broken mortgage system.

In letters in 2011 to Wisconsin Attorney General J.B. Van Hollen and U.S. Attorney General Eric Holder, and in House Concurrent Resolution 85 that she introduced, Congresswoman  Baldwin has worked arduously to ensure that any mortgage settlement should make defrauded homeowners whole and to investigate and hold accountable all those who engaged in fraudulent mortgage and foreclosure practices.

Since the announcement of the settlement, she also has fought to direct settlement money toward impacted homeowners. She sent a letter to Attorney General Holder alerting him that Governor Scott Walker planned to use a sizable portion of Wisconsin's settlement money patching the state budget, rather than helping Wisconsin homeowners. Her letter called on Mr. Holder to work to ensure that all future monies recovered are directed to those families who were harmed by mortgage industry abuses.

Wisconsin Resources on the Settlement

• Settlement FAQ
• National Settlement Fact Sheet
• Wisconsin Settlement Fact Sheet
• Federal and State Investigations Fact Sheet
• Settlement Flow Chart

Rep. Baldwin's Work on the Issue:

• Letter to U.S. Attorney General Eric Holder (November 1, 2011)
• House Concurrent Resolution 85 (November 3, 2011)
• Letter to WI Attorney General J.B. Van Hollen (December 5, 2011)
• Letter to U.S. Attorney General Eric Holder (February 14, 2012)

 For more housing resources, visit Rep. Baldwin's Help for Homeowners page.