This morning officials announced a $25 billion settlement with the five largest mortgage lenders over foreclosure abuses. Under the agreement, Bank of America, Wells Fargo, JPMorgan Chase, CitiGroup, and Ally Financial, will reduce nearly 1 million loans, compensate Americans wrongfully foreclosed upon with payments ranging from $2,000 – $750,000 and refinance mortgages for underwater borrowers over the next 3 years.
During the wrongful foreclosure crisis, Americans across the country were being threatened with foreclosure filings regardless if they were current with payments. Complaints included banks foreclosing illegally on the wrong address, illegally foreclosing on soldiers fighting abroad, foreclosing on homes that were fully paid off, foreclosing on homeowners who were barely late with their payment and foreclosing on homeowners who requested mortgage modifications under home affordable mortgage programs. (more…)