The $25 billion mortgage-fraud settlement includes a nice chunk of change going to the states. So, we have to ask, how did Virginia do?
The good folks at SNL Financial did the state-by-state breakdown.
First of all, the total amount the banks have to pay isn’t $25 billion, but closer to $40 billion, thanks to the odd way the government credits the spending.
The big “winner” is California — not surprising, as so many loans were written there. It’s getting about $18 billion; Florida is receiving about $8.4 billion. That includes benefits for homeowners and former homeowners in those states, penalties paid to individuals, and penalties paid to the state government.
About $479.6 million will be coming to Virginia. The bulk — almost $410 million — will be in the form of “mortgage relief,” meaning principal forgiveness and other reductions in the amounts people owe. The state itself will receive $69.7 million.