Foreclosure Abuse Settlement Reached

$26 billion settlement will give money back to victims of the housing crisis.
1:22 | 02/09/12

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Transcript for Foreclosure Abuse Settlement Reached
-- that big news for millions of homeowners millions of homeowners who are -- are underwater on their mortgages or who have lost their homes. Altogether to foreclosure the government is reached in nearly. 26 billion dollar settlement with the nation's biggest banks the largest deal of its kind in history the deal. We'll give money back to victims of the housing crisis in the form of a check. Or lower -- -- trade ABC's -- comical intrigue are weekend -- has the details now breaking overnight be on the pay good morning huge. -- this is a massive deal it rivals the settlement with big tobacco back in 1998. And it's meant little big banks accountable for foreclosure abuses we've all heard about like evicting homeowners without the necessary documents. -- -- banks involved in the settlement include Bank of America Citigroup and JPMorgan Chase. Wells Fargo and allied bank and under the terms the deal about one million homeowners. Will more on their house -- and they are -- we'll get their debt reduced or we'll be able to refinance at lower rates. The other part of this point six billion dollar deal affects people who lost their homes the last three years they'll get checks for about 2000 dollars. So of course the big question this morning can -- help jumpstart the economy. It is a significant start that there are many critics of this deal out there in fact we still don't know how many states are participating. And mortgages owned by Fannie Mae and Freddie Mac won't I repeat won't be covered. And Josh that excludes about half of all mortgages nonetheless this is significant news there they think -- be --

This transcript has been automatically generated and may not be 100% accurate.

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