10 Top Banks Agree to Pay $8.5 Billion for Foreclosure Abuses


WASHINGTON -- 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.

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Good but what happens to all those people that aren't helped and have ruined credit? Remember if you are going to look into getting a mortgage make sure you keep your credit in great shape.Maintaning great credit is getting harder and harder. Make sure you constantly check you credit reports and if there are discrepencies it would be worthwhile to get a top notch credit repair company. Get a reputable one like Lexington Law to help you so that you know you will get results.

January 23 2013 at 8:14 PM Report abuse rate up rate down Reply

Well The big bank took your house, Left you on the street and OH here is 500.00 Sorry won't happen again.

January 08 2013 at 3:04 PM Report abuse rate up rate down Reply

Bankers destroyed the American dream. Obviously unAmerican activity.

January 08 2013 at 2:05 AM Report abuse +1 rate up rate down Reply

It's the Golden Rule folks. The one with the Gold Rules. Been that way for thousands of years. All this is just a blip on the radar screen of humanity.

January 08 2013 at 2:04 AM Report abuse +1 rate up rate down Reply

how about giving the homes back to the ones YOU stole them from, This article is a frigging joke!!

January 07 2013 at 11:27 PM Report abuse +2 rate up rate down Reply

There are a lot of people disturbed by this for different reasons. My reason is simple. This is a slap in the face of those homeowners that lost their homes to criminal action and are now being thrown a couple of bucks to go away and shut up. I voted for Obama but this acction sure won't get him any "way to go" as far as I am concerned. He needs to do what is right and this is just not right. The banks need to pay up and shut up. This is the move of a bunch of low life snobs and endorsed by a president that doesn't deserve my approval.

January 07 2013 at 9:12 PM Report abuse rate up rate down Reply

Part of the Obama redistribution plan. Don't complain when your bank fees go up and you get zero interest on your savings accounts.

January 07 2013 at 6:35 PM Report abuse rate up rate down Reply

of course they agreed to pay..they will now pass that on to the customers...us.

January 07 2013 at 6:33 PM Report abuse +2 rate up rate down Reply

If the Bag in the Whitehouse would have given 3 million dollars to every working person over the age of 55 with 3 stipulations, all the economic woes would have been fixed. To get that money you would have had to buy a new home or pay off your existing home, buy a new Ford or Chevy, and retire. The Housing market, the auto industry would have been saved and the job market opened with millions of available jobs that were retired from, and save the federal government trillions

January 07 2013 at 5:16 PM Report abuse +1 rate up rate down Reply
3 replies to bttmlinegrl's comment

Let's hear a big rounnd of applause for deregulation!! First we artificially keep interest rates so low that the banks can borrow the money they lend at 6%-7%-8% at 0.025% at the Fed. Discount window, then we lax the lending requirements, wave down payments, completely ignore debt ratios, and allow the banks and mortgage lenders to say yes to anyone with a pulse! For good measure we gut the SEC which was the only watchdog who could have STOPPED or PREVENT this insane behavior, and then turn the banks loose to foreclose on ALL of the "fat chance" loans that they lobbied to write in the first place because there was such a huge margin to make a free money from the fed!! You talk about the tail wagging the dog!! Deregulation with billions at stake is total insamity. People want to see jail for those who participated, well guess what, what they did was greedy, immoral, stupid and 100% wrong, but thanks to deregulation, it wasn't illegal!!

January 07 2013 at 3:49 PM Report abuse +4 rate up rate down Reply
1 reply to johndson's comment

What a lot of people don't understand is even the people who bought homes they couldn't afford participated in the scam, pretending that they didn't know their loan rate would increase. Please...that's the most ridiculous thing I've ever heard. No interest rate stays at 0%.

January 07 2013 at 4:09 PM Report abuse rate up rate down Reply