Banks agree to $1.5 billion mortgage settlement
June 5, 2013
More than 200,000 Californians will each receive checks worth nearly $1,500 this month as part of a $1.5 billion national mortgage settlement, the state attorney general’s office said Tuesday.
Homeowners who successfully filed claims saying they were victims of wrongful foreclosures will each receive checks for $1,480 from the national settlement administrator, Rust Consulting. The administrators will begin sending out checks next week.
The recipients are homeowners who had their mortgages serviced by one of the five major banks involved in the settlement. Ally Financial Inc., Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. were accused of misconduct in servicing mortgages.
Primarily, the lenders were found to have lost refinancing applications or filed notices of default while they also considered alternatives to foreclosure, a practice that is illegal in California.
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