U.S., Banks Seal $26 Billion Settlement on Foreclosures
Category: Frauds & Scandals
Thursday, February 09, 2012 2:40 PM / WSJ
Government officials have sealed an agreement valued at as much as $26 billion with five major banks, capping a yearlong push to settle federal and state probes of alleged foreclosure abuses by lenders.
The deal represents the largest government-industry settlement since a multistate deal with the tobacco industry in 1998.
The agreement covers five banks: Ally Financial Inc., Bank of America Corp.,Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. Together, the five handle payments on 55% of all outstanding home loans, or about 27 million mortgages, according to Inside Mortgage Finance.
The agreement will include at least 49 states, and officials were finalizing a separate accord with one remaining holdout, Oklahoma.