National Mortgage Settlement

The National Mortgage Settlement, reached in 2012, was a legal agreement between the federal government and several major banks in response to the 2008 financial crisis. It aimed to address mortgage servicing abuses that harmed homeowners, particularly those facing foreclosure. The settlement required banks to pay billions in penalties and provide relief to affected homeowners, such as loan modifications and cash payments. It sought to improve practices in the mortgage industry and offer support to those struggling with their mortgages, helping to stabilize the housing market and protect consumers from unfair treatment.