Attorney General Eric Schneiderman today announced that up to $15 million of the $132 million he secured in the national mortgage servicing settlement will be used for foreclosure prevention.
Schneiderman said as much as $9 million will be used to continue the state’s Foreclosure Prevention Services Program, which was set to expire April 1. About $6 will go to housing and community renewal programs through not-for-profit housing organizations.
“We have an obligation to provide assistance to the struggling homeowners across the state facing foreclosure, and this portion of the national mortgage settlement will ensure that families in New York State have the legal services they deserve to fight wrongful foreclosures and protect themselves in court,” Schneiderman said in a statement.
Schneiderman helped secure the national $25 billion settlement with the nation’s largest banks last month after protesting a multi-state settlement last year. As part of the deal, President Obama in January named Schneiderman to head up a new mortgage crisis unit.
The deal includes $790 million for New York, including $495 million for loan modifications and $136 million in direct payment to the state — which Schneiderman is detailing today.