FINANCIAL TIMES: US regulators are preparing to announce a settlement, worth up to $39.5bn, and covering nearly all 50 states that would resolve allegations that five leading banks systematically abused borrowers in their pursuit of improper home seizures.
Under the proposed agreement, Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial would be forced to improve their mortgage procedures; reduce borrowers’ loan balances and monthly payments; and make about $4.2bn in cash payments to an estimated 750,000 aggrieved homeowners and state governments, people with knowledge of the matter said.
In exchange, officials would promise not to pursue certain mortgage-related legal claims against the targeted banks…. (more)
