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Banks To Pay $25 Billion For Role In Foreclosure Crisis11:55
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A foreclosure sign is seen on the lawn of a home in Egg Harbor Township, N.J. (AP)
A foreclosure sign is seen on the lawn of a home in Egg Harbor Township, N.J. (AP)

Five of the nations largest banks agreed to a $25 billion settlement on Thursday over their role in the foreclosure crisis. It amounts to the largest settlement with a single industry since the tobacco deal of 1998.

State Attorneys General from across the country - including Massachusetts Attorney General Martha Coakley — signed on to the agreement, which will provide compensation to all 49 states, including more than $300 million to the Bay State.

"With this settlement we are recovering precious tax payer resources, and the state attorneys general will be establishing a fund to facilitate payments to borrowers who as a result of improper lending practices lost their home during the foreclosure crisis," US Attorney General Eric Holder said at a news conference announcing the settlement.

Massachusetts’ estimated share of the settlement is $318 million. In a statement, Attorney General Martha Coakley said the agreement "provides for immediate relief and continued enforcement." But, she added, “by no means is this settlement the end of our work seeking accountability and relief.”

For more on what the settlement means, and how it might benefit Massachusetts, we'll speak with The Boston Globe's Jenifer McKim and Paul Collier, a Cambridge attorney who represents homeowners facing foreclosures.

Guests:

  • Jenifer McKim, The Boston Globe.
  • Paul Collier, Cambridge attorney.

This program aired on February 9, 2012.

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