6at4 Business Report: Help for home refiniancing

There are signs that progress is being made to help the crisis.

February 9, 2012 12:49:44 PM PST
Help is on the way for nearly 2 million American homeowners hurt by the housing crisis.

Today, the government announced that a landmark $25 billion settlement between 49 states and the nation's largest banks had been reached.

Under the deal, about 1 million borrowers who owe more than their homes are worth will have their debt reduced or be able to refinance at lower rates.

Another 750,000 who lost their homes in the last 3 years will get a check for about $2,000.

The settlement stems from a laundry list of abuses that occurred after the housing bubble burst.

"Not just the robo-signing conduct that has been so publicly discussed, but a long list of mortgage servicing issues, such as lost paperwork, long delays, missed deadlines..."

One important note: Mortgages owned by Fannie Mae and Freddie Mac will not be covered under this agreement.

You can get more details by visiting the website nationalmortgagesettlement.com.