Conn. borrowers win $119M in mortgage settlement

HARTFORD, Conn. (AP) - Connecticut Attorney General George Jepsen says borrowers in the state will receive about $119 million in benefits from loan modifications and other direct relief as part of a $25 billion deal with the nation's biggest mortgage lenders over foreclosure abuses.

Jepsen says an estimated 7,500 Connecticut borrowers who lost their home to foreclosure from Jan. 1, 2008, through Dec. 31, 2011, would qualify for about $1,500 in cash payments.

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Federal and state officials announced the deal Thursday. Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial will reduce loans for nearly 1 million households and will send checks of $2,000 to about 750,000 Americans who were improperly foreclosed upon.

Jepsen, who helped negotiate the deal, said the value of refinanced loans to borrowers who are under water in their mortgages is about $36 million.