CONCORD - Granite State homeowners will receive about $43.6 million in direct relief under a proposed state and federal settlement of foreclosure abuse claims against five of the nation's largest mortgage servicers, state Attorney General Michael A Delaney announced today.

Delaney and state Banking Commissioner Ronald A. Wilbur announced New Hampshire formally joined the landmark $25 billion agreement.

“This agreement is very significant in how it addresses the fraud that these banks committed against many homeowners across our state,” Delaney said. “This agreement not only provides much needed relief to New Hampshire borrowers, but it also puts a stop to many of the bad behaviors that contributed to the mortgage mess in our state and across the country.”

U.S. Attorney General Eric Holder, U.S. Housing and Urban Development Secretary Shaun Donovan and a bipartisan group of state attorneys general announced the unprecedented settlement in Washington, D.C. on Thursday.

Under the proposed agreement, New Hampshire borrowers will receive an estimated $19.4 million in benefits from loan term changes and other direct relief.
New Hampshire borrowers who lost homes to foreclosure from Jan. 1, 2008, through last Dec. 31 and encountered servicing abuse would qualify for about $4.5 million in payments, Delaney said.

In addition, the value of refinanced loans to New Hampshire underwater borrowers would be an estimated $9.5 million, Delaney said. The state also would receive a direct payment of $11 million.