Banks agree to $1.5 billion mortgage settlement
June 5, 2013
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.