Washington - Ten top-notch banks and mortgage companies have agreed to drain out $8.5 billion in order to resolve complaints that they illegally foreclosed on those houses which should have left bared.
The resolution that announced this Monday involved names of some of the biggest names in the financial industry, including Wells Fargo & Co., Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co.
According to federal regulators, the banks will pay billions of dollars to assist the homeowners in order to end the review process commenced against them. As per Federal Reserve and the Office of the Comptroller of the Currency, they assented to paying a total of $3.3 billion to more than 3.8 million borrowers whose homes were wrongly foreclosed in 2009 and 2010.
Further, the institutions agreed to provide another $5.2 billion to assist those borrowers so that they could modify their existing mortgages or get relief from the judgments against them.
As per the resolution, the mortgage holders who were illicitly foreclosed on could receive from a few hundred dollars to $125,000.
Advocates ballpark figure says that about 400,000 mortgage holders are going to be rewarded and relieved by this settlement done with the Federal Reserve and Office of the Comptroller of the Currency.
However, borrowers who had requested reviews earlier would get higher repayments; while who didn’t will get a few hundred dollars.
Photo courtesy: New York Times