District homeowners are eligible for an estimated $40 million from a landmark settlement of more than $25 billion with five banks over fraudulent foreclosure practices.
U.S. Attorney General Eric Holder announced the deal Thursday morning with Wells Fargo, Bank of America, J.P. Morgan Chase, Ally Financial and Citigroup.
According to a news release issued by the city’s Office of the Attorney General, the city government will receive a $4.6 million payment while local homeowners can tap into $40 million, but it “will depend on how many D.C. homeowners choose to participate in the principal reduction and refinancing programs.”
Local homeowners who lost their homes to foreclosure from 2008 through 2011 could be eligible for cash payments.
“This settlement is a strong win for consumers,” Mayor Vincent C. Gray (D) said in the news release. “Even homeowners who don’t receive direct monetary benefits under the settlement will benefit as the reduction in unnecessary foreclosures helps to stabilize communities and the housing market in and around D.C.”