Missouri AG to Use $38 Million From Servicing Settlement to Ease Budget Concerns

Missouri Attorney General Chris Koster has announced that he has deposited $38 million into Missouri’s general revenue fund resulting from his efforts to conclude Missouri’s portion of the national mortgage settlement. The national mortgage settlement, which was announced in February, addresses allegations of foreclosure abuses, unfair mortgage servicing practices and fraud by the nation’s five largest mortgage servicers: Bank of America, Citigroup, JP Morgan Chase, Wells Fargo, and Ally Financial. As part of the settlement, the nation’s attorneys general negotiated a direct payment to each state as well as direct benefits for consumers. “The state of Missouri has faced significant budget challenges the past few years, and I am pleased that our work in the national mortgage settlement will lessen the financial pressure on the state, especially for the state’s colleges and universities,” Koster said.