BofA, Citi, Others To Pay $8.5B Over Foreclosure Abuse Claims

Law360, New York (January 7, 2013, 1:03 PM EST) -- Ten major banks including Citigroup Inc. and Bank Of America Corp. will pay $8.5 billion to homeowners victimized by faulty mortgage loan servicing and foreclosure practices, scrapping a previous settlement that had created a panel to review homeowners' claims, banking regulators said Monday.

The Federal Reserve and the Office of the Comptroller of the Currency said the banks — which also include JPMorgan Chase & Co. and Wells Fargo & Co. — will pony up $3.3 billion in direct payments to homeowners and $5.2 billion in...
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