KAKE | Wichita, Kansas | News

10 Banks Agree To Pay $8.5 Billion For Foreclosure Abuse

By: Associated Press
By: Associated Press

Stay up-to-date with KAKE News:

Monday, January 7, 2013

Ten major banks and mortgage companies have agreed to pay $8.5 billion to settle complaints that they wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.

Federal Regulators say the banks will pay billions 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.

Under the settlement, people who were wrongfully foreclosed on could receive from a few hundred dollars up to $125,000.

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.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
KAKE TV 1500 N. West Street Wichita, KS 67203-1323 (316) 943-4221
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 185885842 - kake.com/a?a=185885842