New York, January 24 (FinanceEnquiry.com) - Government officials said on Monday that a draft settlement between five major mortgage lenders and U.S. states had been sent for review to state officials after the banks agreed to reorganize their industry, following loss of homes by people, who were targets of deceptive foreclosure practices. Out of the households that might be eligible for assistance as part of the settlement, about 750,000 Americans will receive checks for about $1,800.

The agreement may remodel the existing mortgage lending guidelines, so that the homeowners, who are at risk of foreclosure, are in a position to restructure their loans. Moreover, the reshaping of the guidelines would help in reducing the size of mortgages of about 1 million homeowners.

The U.S. state attorney generals and the five major banks, Bank of America Corp (NYSE: BAC), Wells Fargo (NYSE: WFC), JPMorgan Chase (NYSE: JPM), Ally Financial and Citibank, might adopt the agreement within a couple of weeks. The deal, which has been in the making for more than a year, was accomplished due to pressure from President Obama, who is expected to extol the deal in his State of the Union address today.