Conn. to Receive $190M in Mortgage Abuse Settlement

Connecticut borrowers will receive more than $190 million of a $25 billion mortgage abuse settlement with the country's five largest servicers, according to the Hartford Courant.

The joint federal settlement, which will benefit all 50 states, is the result of an investigation which found that , , JPMorgan Chase, Wells Fargo and Ally Bank were using "robosigning" to process foreclosure documents back in 2010.

In addition to the $190 million in loan modification relief funds, Connecticut residents that had their foreclosure documents "robosigned" and lost their homes between Jan. 1, 2008 and Dec. 31, 2011 will each qualify for $1,500 in cash. According to the Courant, approximately 7,500 borrowers fall under this category. The state will also receive $27 million for foreclosure prevention programs.

Bank of America in Southington in October, which Connecticut Attorney General George Jepsen said was a response to complaints that the company was unwilling to work with homeowners.