U.S. Banks to Send Checks for $3.6 Billion in Foreclosure Settlement


The nation's largest banks will begin sending payments this week to millions of Americans who may have been wrongfully foreclosed on during the housing crisis.

A total of $3.6 billion in cash will be distributed to 4.2 million borrowers who lost their homes or were at risk of foreclosure, the Federal Reserve and the U.S. Comptroller of the Currency said Tuesday. Payments will range from $300 to $125,000. About 90 percent of borrowers whose mortgages were serviced by 11 of the banks will receive payments by the end of April, the agencies said.

The last group of payments is expected in mid-July.

A large share of those receiving payments, about 3 million borrowers, will each get only $300 or $400, according to data issued by the two agencies. Around 80 percent of them will receive $1,000 or less.

At the other end of the scale, $125,000 payments will go to 1,082 military personnel, who were foreclosed upon in violation of a law prohibiting foreclosures on active-duty service members, and to 53 borrowers who weren't in default on their mortgages but still lost their homes.

Generally homeowners who were wrongly denied a loan modification are entitled to relatively small payments. By contrast borrowers whose homes were deemed to be unfairly seized are eligible for the biggest payments.

The amounts apply to borrowers whose mortgages were serviced by the 11 banks. Details for the other two, Goldman Sachs and Morgan Stanley, will be announced in the near future, the agencies said.

The 13 banks, which include Bank of America, JPMorgan Chase, Wells Fargo and Citigroup, reached a settlement with the federal agencies in January. They agreed to pay a total $9.3 billion in cash and in reductions of mortgage balances.

The banks settled the regulators' complaints that they wrongfully foreclosed on borrowers with abuses such as "robo-signing," or automatically signing off on foreclosures without properly reviewing documents.

The settlement covers borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010. It ended an independent review of loan files that the two agencies ordered in 2011.

Banks and consumer advocates had complained that the loan-by-loan reviews were time-consuming and costly and didn't reach many affected borrowers. Some questioned the independence of the consultants who performed the reviews, who often ruled against borrowers.

Consumer advocates have criticized the deal, saying the regulators settled for too low a price by letting banks avoid full responsibility for wrongful foreclosures.

The other banks in the settlement are HSBC, MetLife Bank, PNC Financial Services, Sovereign, SunTrust, U.S. Bank, Aurora, Morgan Stanley and Goldman Sachs.

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blkbenz99e

How do I get my payment? I and my husband are both disabled and need help with all this stuff.
We lost our house or should I say they took it. I need help I didn't know anything about this refund
I and my husband may be due.

April 11 2013 at 5:54 AM Report abuse rate up rate down Reply
1 reply to blkbenz99e's comment
omgnojobs

THE MUSLIM CLOWN STOLE YOUR HOUSE LIKE HE STOLE MILLIONS OF AMERICANS HOUSES N NOW WANTS TO SEND YOU $300.00. !

April 11 2013 at 6:48 AM Report abuse rate up rate down Reply
pfg131

And how are we supposed to monitor that????..Maybe they should set up a website of all the names that are to recieve the funds so taht anyone who received the funds can post it. People have moved!!!...Lost their homes to foreclosure!!!..DUHHHHHHHHHHHHH!!1...How are they going to know where to finmd, track people???? especially if they had to move out of state????/..I think it's a bunch of BSSSSS..to make the victims and American People think they keep doing things to help people and to rectify their imcompotence in the first place!!!!...Like I said where do you find out if your on the List?????????...Liars!!!...you know where that is money is going to Go???To the State Controllers office-Uncliamed Funds"...Watch!!!!!...maybe need to check their too!!!...and don't owe any taxes, back child support, garnished wages.....cause they will just find another way to keep this money and not give it back to you!!!!! Watch!!!!!...They think we the American people are stupid!!!..Their one of us, their amongst us, their our parents, grandparents, sister, brother, mother, we eat at the same table, we hear their dail drama BS...of the decisions they have to make everyday, trying to help victims of Government!!!!

April 11 2013 at 12:54 AM Report abuse rate up rate down Reply
judy

Consumer advocates have criticized the deal, saying the regulators settled for too low a price by letting banks avoid full responsibility for wrongful foreclosures.

No!

Our regulators are crooks too!

April 11 2013 at 12:01 AM Report abuse rate up rate down Reply
judy

All the fraud was conspicuous and our judicial system protected the banksters. WHY! All that money could serve to jail those crooks and those who because of their power, together, defrauded our American people. Our government shall be glad that our people are people of peace, otherwise, the country would have been in flames by the next morning. SHAME!

April 10 2013 at 11:54 PM Report abuse rate up rate down Reply
1 reply to judy's comment
omgnojobs

THE MUSLIM CLOWN STOLE YOUR HOUSES IN 2010 ,PEOPLE SHOULD FIGHT BACK N BURN BLOCKS N BLOCKS OF HOUSES DOWN IN SHOW OF SUPPORT OF THE AMERICAN PEOPLE GETTING ROBBED . ! STAND UP N FIGHT . !

April 11 2013 at 6:51 AM Report abuse +1 rate up rate down Reply
itakeitlikeaman

Throw a few CEO's in JAIL.

April 10 2013 at 10:27 PM Report abuse +1 rate up rate down Reply
mhim429

This is a settlement? How long is it going to take for many of us to realize that it's time to take our country back?
There are so so so many injustices in our country and they keep piling up...Now our President wants to give up the benefits WE PAID FOR ...so the Congress can give big OIL and other corporations our tax dollars....I'm so sorry that so many people lost their homes so more banksters could make more money for themselves....AND THEN ALL OUR GOVERNMENT MADE THEM PAY WAS A LOUSY 100 BUCKS!

April 10 2013 at 9:57 PM Report abuse rate up rate down Reply
1 reply to mhim429's comment
omgnojobs

CAUSE THE MUSLIM CLOWN IS A ISLAMIC EXTREMIST ILLEGAL IMMIGRANT TERRORIST ROBBING YOUR HOMES IN AMERICA. ! . !

April 11 2013 at 6:54 AM Report abuse +1 rate up rate down Reply
drbuckles

They spent $13 trillion bailing out the banks and could have spent almost a trillion to bailout the home owners and the economy would have been up and running again. It's demand that drives the economy not the too big to fail banks; they rape the country for profits for the wealthy. Every state should do what North Dakota did and have their own banks, separate from the investment, fraudulent banking hijackers in NY. Your tax dollars would stay in your state and be used to invest into your economies.

April 10 2013 at 8:27 PM Report abuse +1 rate up rate down Reply
Barb Smith

That is so ridiculous to take a persons home and give Them a lousy three hundred bucks. Those people should file a class action law suit demanding Their money back

April 10 2013 at 4:40 PM Report abuse +1 rate up rate down Reply
2 replies to Barb Smith's comment
mhim429

YEAH, but it's clear who our government is on the side of....and it's not it's citizens.

April 10 2013 at 10:00 PM Report abuse rate up rate down Reply
omgnojobs

AND 50% OFTHE PEOPLE VOTED FOR FREE HANDOUTS AS THE MUSLIM CLOWN IS ROBBING ALL AMERICANS HOMES. !

April 11 2013 at 6:56 AM Report abuse +1 rate up rate down Reply
lenders1

It may have been worse. Many could have led with their hearts and been bleed by the ones out there promising them everything "but results"

April 10 2013 at 3:48 PM Report abuse -1 rate up rate down Reply
qaqs9000

Just your friendly bank looking out for your interests. Didn't they $crew us three different times now? Just one more quick lunge of the knife into the gut before you die. We live in such a great country.

April 10 2013 at 3:28 PM Report abuse +3 rate up rate down Reply