Minnesota Gets $280 Million in National Mortgage Settlement

ST. PAUL  (AP) - State officials say Minnesota mortgage borrowers will be eligible for a total of $280 million from a national settlement between states and the country's biggest mortgage lenders.

Minnesota Attorney General Lori Swanson and Commerce Commissioner Mike Rothman announced Minnesota's settlement Thursday. Five major U.S. banks agreed to pay about $26 billion to reimburse American homeowners.

The deal requires the banks to reduce loans for about 1 million households. Some homeowners will be eligible for direct relief checks. The relief is targeted at mortgage holders who owe more than their homes are worth.

Swanson's office says in Minnesota, $167 million will go to loan reductions and other relief, and $113 million will go to direct payments to and refinancing help for borrowers.

People with questions about the settlement can call Swanson's office at 1-800-657-3787.

(Copyright 2012 by The Associated Press.  All Rights Reserved)