U.S. Banks to Pay $125,000 to Many Hurt in Foreclosures

U.S. Banks to Pay $125,000 to Many Hurt in Foreclosures

U.S. banks including JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) will pay as much as $125,000 plus equity to individual customers most harmed by mishandled foreclosures in 2009 and 2010, according to a remediation plan released by bank regulators.

“While we’ve made great strides since we took enforcement action against large mortgage servicers last year, much work is still ahead,” said Thomas Curry, U.S. comptroller of the currency, in a statement. This industry guidance “helps people who are considering requesting a free review to understand how they may be compensated for the financial injury they may have suffered,” he said.

A group of the largest mortgage servicers were ordered by the Office of the Comptroller of the Currency and other banking regulators last year to clean up their foreclosure practices and hire independent consultants to see whether their foreclosure methods in 2009 and 2010 unfairly hurt specific customers. The 14 firms, also including Wells Fargo & Co. (WFC), could be instructed to give lump-sum payments between $500 and $125,000 in each case involving improper practices, the regulators said.

Rest from Bloomberg here…

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Comments
5 Responses to “U.S. Banks to Pay $125,000 to Many Hurt in Foreclosures”
  1. Steve Sanchez says:

    After they’ve destroyed your credit rating and taken your house, this is peanuts. Try getting a decent job now!

  2. TO Tell The Truth says:

    Someone asked why are they giving such large sums? Because they are seeing how homeowners and others are getting millions in compensation so this is chicken feed to them and will avoid these large pay outs if they have to go to court.

  3. marge says:

    think for a moment, this is not a good thing at all. It is litterly a bribe in fact if look at it closely.
    And this money is taxed , on the person who is rec’d of those said monies.
    IRS will tax you on losing your house, as they apply it as a gift you gave away, so you the homeowner will be taxed on the house monies. and will be applied a judgement from mortgage over those same said monies.
    so if one accepts these said monies, your accepting the fact that no harm has been done , kinda like selling out your soul …if you the homwoner has one. As most do have soul, and back bone, but have been mis-guided and told many lies in regards to mofifications on there home loans to date. Mis-guided by the banks, and freddie mac, and fannie mae, so why accept monies from these people , when in fact you will be taxed as income on it. best way to deal with judgements on foreclosures is file straight chapter 7 if after a good fight you do lose your home, at least walk away …free .Free from debt .

  4. Pamela Edwards says:

    I suppose they are trying to soothe the savage beast or quiet the restless natives.Whatever! This just another big scam just like all the other ones that have procceded it .Don’t believe it :it is all lies.

  5. Bobbi Swann says:

    Yep, smells like bullshit….and if it walks like a duck and talks like a duck…then it’s probably a politician!

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