Banks Face Stiff Penalties Under $25B Mortgage Deal

Law360, New York (March 12, 2012, 4:53 PM EDT) -- Banks participating in the $25 billion mortgage settlement will face heightened public scrutiny of their efforts to help homeowners and the threat of future financial penalties, according to court documents filed Monday, more than a month after the deal was announced to great fanfare.

Ally Financial Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase Bank NA and Wells Fargo Bank NA also agreed to strict new mortgage servicing standards that will be overseen by a federal monitor. The banks will be subject to $1 million...
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