Ten major banks, including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo, have agreed to pay $8.5 billion to homeowners who were wrongfully foreclosed on.
From the announcement from the Office of the Comptroller of the Currency and the Federal Reserve:
The sum includes $3.3 billion in direct payments to eligible borrowers and $5.2 billion in other assistance, such as loan modifications and forgiveness of deficiency judgments. The payments involve mortgage servicers operating under enforcement actions issued in April 2011 by the OCC, the Federal Reserve, and the Office of Thrift Supervision. The agreement ensures that more than 3.8 million borrowers whose homes were in foreclosure in 2009 and 2010 with the participating servicers will receive cash compensation in a timely manner.
Eligible borrowers are expected to receive compensation ranging from hundreds of dollars up to $125,000, depending on the type of possible servicer error.