Oklahoma Attorney General Scott Pruitt has announced that the state has reached an independent settlement with Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and GMAC, whereby the mortgage companies will pay a total of $18.6 million in compensatory damages to resolve claims of ‘unfair and unlawful’ servicing practices.
The settlement follows an 18-month investigation by attorneys general in 50 states and the U.S. Department of Justice into mortgage servicing practices that contributed to the nation's mortgage and foreclosure crisis. Pruitt had expressed concerns about a potential national settlement, noting that it ‘greatly overreached the authority of state attorneys general’ and would not be an equitable solution for borrowers who remained current on their underwater mortgages. Oklahoma, in turn, did not take part in the national settlement.
‘This settlement will provide damages to those Oklahomans who did fall victim to unfair and unlawful misconduct of mortgage servicing companies, while not exceeding the appropriate role and authority of state attorneys general,’ Pruitt commented.