Banks trying to move past robo-signing
A top bank official put his best foot forward in Fort Wayne a day after eligible Hoosiers learned they could join a national mortgage settlement.
As part of the deal, more than 37,000 Indiana homeowners who were foreclosed on and subject to an error by a mortgage servicer between Jan. 1, 2008, and Dec. 31, 2011, will split $31.4 million in cash payments.
The average disbursement – $840 per household – is payback for charges of “robo-signing” that pushed mortgage applications through without proper review. Indiana and 48 other states this year joined the federal government’s settlement with five major lenders and servicing institutions to settle the claim: Ally/GMAC, Bank of America, Citi Bank, JPMorgan Chase and Wells Fargo.
Russ Cross, senior vice president and regional servicing director for Wells Fargo, said it’s time to move on. Cross, whose region consists of Indiana, Michigan, Ohio, Illinois and Wisconsin, is based in Des Moines, Iowa.