From AP:Ten major banks and mortgage companies agreed Monday
to pay $8.5 billion to settle federal complaints that they wrongfully foreclosed
on homeowners who should have been allowed to stay in their homes. The banks, which include JPMorgan Chase, Bank
of America and Wells Fargo, will pay billions to homeowners to end a review
process of foreclosure files that was required under a 2011 enforcement action.
The review was ordered because banks mishandled people's paperwork and skipped
required steps in the foreclosure process.
Under the new settlement, people who were wrongfully
foreclosed on could receive from $1,000 up to $125,000. Failing to offer
someone a loan modification would be considered a lighter offense; unfairly
seizing and selling a person's home would entitle that person to the biggest
payment, according to guidelines released last summer by the Office of the
Comptroller of the Currency. Monday's settlement was announced jointly by the
OCC and the Federal reserve. The
agreement covers up to 3.8 million people who were in foreclosure in 2009 and
2010. Of those, about 400,000 may be entitled to payments, advocates estimate....
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