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New York gets $800M in Bank of America settlement
NEW YORK (AP and CBS6) -- New York state is getting $800 million as its share of a national $16.65 billion settlement with Bank of America over its role in the sale of mortgage-backed securities in the run-up to the financial crisis.
New York Attorney General Eric Schneiderman announced the settlement Thursday. He says the bank has agreed to pay the state $300 million in cash and $500 million in the form of direct relief to consumers. To access relief provided by the settlement, individuals can call the Attorney General's hotline at 1-855-466-3456. They will be connected to one of the HOPP legal services or housing counseling groups within 24 hours.
The deal calls for the bank, the second-largest in the U.S., to pay a $5 billion cash penalty and provide billions of dollars to struggling homeowners. Bank of America says its cash payouts will total $9.65 billion.
The settlement is the largest deal the government has reached with a bank over the 2008 mortgage meltdown.