Banks, Mortgage Servicers Paying $8.5B To Settle Accusations By Comptroller, Fed Of Wrongful Foreclosure

By Mike Obel | January 07 2013 12:35 PM

Ten major mortgage services agreed Monday to pay $8.5 billion to homeowners who were wrongfully foreclosed on.

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Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (JPM), Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC) and six other companies are paying the money to settle accusations by the Office of the Comptroller of the Currency and the Federal Reserve.

The government agreed to the settlement so homeowners could be paid, from $1,000 to $125,000, more quickly than if the mortgage servicers continued their time-consuming and expensive case-by-case review of each case, the Associated Press said.