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Banks Offer $5B For Mortgage Probe

U.S. banks, including Bank of America and JPMorgan Chase, have proposed to pay $5 billion to settle claims by the federal and state officials over improper mortgage-servicing practices.

U.S. banks, including Bank of America and JPMorgan Chase, have proposed to pay $5 billion to settle claims by the federal and state officials over improper mortgage-servicing practices, Bloomberg reports. The officials sought $20 billion from the mortgage servicers, which also include Citigroup, Wells Fargo and Ally Financial.

Following the housing collapse, the banks were accused of adopting incorrect procedures, including rubber-stamping documents, leading to the unfair eviction of people from their homes. The proceeds will be used to compensate any borrowers previously wronged in the foreclosure process and provide transition assistance for borrowers who are ousted from their homes.

Click here for the story from Bloomberg.

Click here for the additional coverage from The Wall Street Journal.

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