10 banks to pay for wrongful foreclosures

10 banks to pay for wrongful foreclosures

Ten major banks will pay $8.5 billion to settle complaints that they wrongfully foreclosed on homeowners.

The banks, which include JPMorgan Chase, Bank of America and Wells Fargo, will pay billions to homeowners to end a review process of foreclosure files that was required under a 2011 enforcement action. The review was ordered because banks mishandled people’s paperwork and skipped required steps in the foreclosure process.

The agreements are the banks’ latest step toward eliminating hundreds of billions of dollars in potential liabilities related to the housing crisis that crested in 2008. When they release fourth-quarter earnings later this month, the banks hope to reassure investors that they are making progress toward addressing those so-called legacy claims.

Read more at The Register-Guard.

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