Federal Regulators, 14 Large Lenders Agree to Settlement re Mishandled Mortgage Foreclosures
Federal regulators and more than a dozen of the nation’s biggest mortgage servicers announced yesterday that they have reached a settlement over what reportedly have been widespread shoddy practices related to mortgage foreclosures.
The lenders, which include some of the country’s biggest banks, will pay restitution to homeowners for the cost of mishandled loans as well as-yet-undetermined monetary penalties under consent decrees, according to Bloomberg.
However, an investigate by state attorneys general that could potentially result in a tougher settlement will continue, reports msnbc.com.
Additional and related coverage:
ABAJournal.com: “Fla. Foreclosure Law Firm to Pay $2M to Settle Attorney General Complaint”
ABAJournal.com: “Bankruptcy Judge to Sanction Lender Processing Services in Mortgage Foreclosure Case”
Bloomberg: “US. Foreclosure Settlement Muddies Outlook for Mortgage Relief”
Des Moines Register: “U.S. tells 16 lenders to repay owners of homes”
Reuters (News Analysis): “Analysis: U.S. banks still face big foreclosure risks”
