New York is among 49 states to join what's being called the largest consumer financial protection settlement in the nation's history, stemming from the mortgage lending crisis.

The estimated $26 billion deal between multiple federal agencies, states and the nation's largest mortgage lenders was announced this morning by U.S. Attorney General Eric Holder.

Lenders include Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.

It is the largest settlement between the government and companies since a landmark tobacco deal in 1998.

It affects tens of thousands of people whose homes were foreclosed by what has since been determined to be illegal processes. Specifically, the banks are accused of signing documents without a notary and without even being sure the facts were correct.

"This reflects our commitment at both the federal and state levels to ensure justice and to recover losses for victims of reckless and abusive practices," said Holder.

"This isn't just about punishing the banks for their irresponsible behavior. It's also about requiring them to help the people they harmed by funding efforts to help homeowners stay in their home," said U.S. Secretary of Housing and Urban Development Shaun Donovan.

Those affected could see principals on their mortgages reduced. Others would get refinancing relief — $3 billion worth — for those who are current on their payments, but their mortgages exceed their home's value.

An additional $1.5 billion will given to be distributed nationwide to some 750,000 borrowers who lost their homes.

President Barack Obama says the agreement helps turn the page on an era of recklessness.

New York State Attorney General Eric Schneiderman only signed off on this after the agreement allowed him to pursue other legal cases against the banks.

Oklahoma was the only state that opted out of the deal.

To learn more about the settlement, visit nationalmortgagesettlement.com.