13 Banks Finalize $9B Foreclosure Relief Package

Law360, New York (February 28, 2013, 3:28 PM EST) -- Federal regulators Thursday finalized a $9.3 billion deal with 13 banks to scrap a foreclosure review process in favor of cash payments and mortgage assistance to borrowers who lost their homes because of robosigning, botched loan modifications and other mistakes.

The agreement, originally announced in January, will cover 4.2 million borrowers, each of whom are expected to pocket compensation worth anywhere from a few hundred dollars to $125,000. Under the settlement, mortgage servicers will fork over $3.6 billion for direct compensation and hand out another $5.7...
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