Ten separate banks will pay up to a total of $8.5 billion between them to settle a case over improper foreclosure practices, but some are arguing that these banks aren’t paying nearly enough.
Which banks are paying?
JPMorgan Chase (NYSE:JPM), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), MetLife Bank (NYSE:MET), PNC Financial Services (NYSE:PNC), Sovereign, SunTrust (NYSE:STI), U.S. Bancorp (NYSE:USB) and Aurora will together pay $8.5 billion.
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What are the banks paying for?
The ten banks and mortgage companies listed above were involved in a massive settlement over improper foreclosure practices that hurt a large number of consumers in recent years. In 2008 and 2009, 3.8 million Americans were in the process of being foreclosed upon, and some 400,000 of those people may be entitled to money from the settlement. Some homeowners were not offered loan modifications they were entitled to, and the banks will face a lighter charge in those instances, while others had their homes unfairly seized and sold, which could see the banks charged as much as $125,000 in each case…