UNITED STATES -- If your home was foreclosed on, relief could be on the way. Ten of America's major banks have agreed to an $8.5 billion dollar settlement over alleged foreclosure abuses. The deal was announced today and was brokered by the Federal Reserve and the Office of the Comptroller of the Currency.
The deal requires 10 banks to pay more than $3 billion dollars in direct payments to mortgage borrowers who were foreclosed on in 2009 and 2010. The banks have also agreed to pay more than $5 billion dollars in assistance to those borrowers. Under the settlement, homeowners who were wrongfully foreclosed on could receive from a few hundred dollars up to $125,000.
The banks involved in the deal are: Aurora, Bank of America, Citibank, JP Morgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo.