WASHINGTON (WKOW) -- Ten major banks and mortgage companies announced an $8.5 billion settlement over alleged foreclosure abuses.
Under the agreement, the banks will provide more than $3 billion in direct payments to wronged borrowers and more than $5 billion in mortgage assistance. People who were wrongfully foreclosed on could receive from a few hundred dollars up to $125,000.
Federal Regulators say the banks will pay the money to homeowners to end a review process of foreclosure files that was required under a 2011 enforcement action. The banks mishandled people's paperwork and skipped required steps in the foreclosure process.
Advocates estimate that about 400,000 homeowners would be eligible for compensation under the settlement with the Federal Reserve and Office of the Comptroller of the Currency.
Banks involved in the settlement include Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.
All content © Copyright 2000 - 2014 WorldNow and WKOW. All Rights Reserved.
Persons with disabilities who need assistance with issues relating to the content of this station's public inspection file should contact Anna Engelhart at 608-661-2767. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, at 888-835-5322 (TTY) or at email@example.com.