Jan. 07 - 10 big U.S. banks will pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators. Conway G. Gittens reports.
The Daily Digit is $8.5 billion. This is how much Bank of America, Citigroup, JPMorgan, Wells Fargo, and six other U.S. banks will pay to end a case-by-case review of foreclosures required by U.S. regulators. Of that money, $3.3 billion will go directly to eligible homeowners, and $5.2 billion will be distributed in loan modifications and forgiveness. In April 2011, the Office of the Comptroller of the Currency and the Federal Reserve asked banks to review foreclosures from 2009 and 2010 to see whether borrowers had been unlawfully foreclosed on or suffered financial harm due to errors in the foreclosure process. But case-by-case reviews can be costly and lengthy, and the government struck the $8.5 billion deal to get relief to consumers faster.