New York state will get $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 Thursday.
The nation’s second-largest bank has agreed to pay the state $300 million in cash and $500 million in the form of direct relief to consumers, including mortgage modifications, new loans, donations to communities and financing for affordable rental housing.
“Today’s result is a major victory in the fight to hold those who caused the financial crisis accountable,” Schneiderman said Thursday. The Democrat was a co-chairman of the state and federal working group that negotiated the national settlement.
The deal is the largest reached so far over the 2008 mortgage meltdown, and the biggest the U.S. Justice Department has ever reached with a single entity.