The Federal Reserve said has said that the new mortgage settlement agreement reached with a host of lenders is likely to help the home owners, who had to deal with improper foreclosures.

They said that the $8.5 billion national mortgage settlement offers another chance to the home owners to access some financial relief following the housing market collapse in the US. The deal is the second major mortgage settlement in two years and is likely to improve housing recovery and also help people who are struggling to pay their mortgages.

Experts say that the banks can help struggling home owners with the agreement money and this will be positive news for the recovery of the American housing market. The settlement agreement includes ten mortgage companies including Bank of America, Citibank, JP Morgan Chase and Wells Fargo as well as the Office of the Comptroller of the Currency and the Federal Reserve Board.

The deal comes after a similar $15 billion National Mortgage Settlement reached between five largest banks and a coalition of state attorneys general. The aim of the settlement is to replace the Independent Foreclosure Review, which was formed to review cases on an individual level.