Federal officials announced today that five major banks have reached an agreement to pay out $25 billion to homeowners who were improperly foreclosed on. JPMorgan Chase, Citigroup, Wells Fargo, Bank of America and Ally Financial will reduce loans for nearly 1 million households. They will also send checks of $2,000 to about 750,000 Americans who were improperly foreclosed upon. The banks will have three years to fulfill the terms of the deal.
The settlement ends a painful chapter that emerged from the financial crisis, when home values sank and millions edged toward foreclosure. Many companies processed foreclosures without verifying documents. Some employees signed papers they hadnâ€™t read or used fake signatures to speed foreclosures â€“ an action known as robo-signing.
Read the full article here >> States, banks reach foreclosure-abuse settlement