Regulators are said to have recommended that mortgage servicers make cash payments of up to $21,000 to delinquent borrowers who were hurt by the banks’ foreclosure practices as part of a larger settlement. Sources who attended a meeting with the regulators said the aim of the so-called “cash for keys” program is to provide an incentive to borrowers to leave their homes, with the bulk of the money intended for them to find a new place to live.

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