Settlement Lifts Hopes For Housing Recovery. (cover story)

The article considers the economic effect of a $25 billion settlement between five large U.S. banking industry firms and U.S. and U.S. states related to the banks' abuses of foreclosure. Elements of the settlement including cash payments to homeowners wrongfully foreclosed and the ability of some homeowners to refinance mortgages which are for more than the market values of their homes are discussed in terms of their possible positive impact on the housing market.