Risk Audit - Training and Recruitment
Thursday, 09 February 2012

US Mortgage Settlement

The United States is expected to announce a major legal settlement with major banks regarding their procedures to repossess defaulted mortgage properties.

These banks were accused to fabricating documents and flouting state laws as they sought to protect their interests.

The settlement will see 50 states and the federal government cease proceedings in exchange for:-
  • An agreement to improve mortgage processes;
  •  A reduction in loan balances and monthly payments;
  •  $ 4.2 billion in compensation to borrowers and the states.

The settlement is expected to involve Bank of America, JP Morgan, Citibank and Wells Fargo.

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