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January 8, 2013

Top Banks Escape Wider Fines with $8.5 Billion Foreclosure Settlement 
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In another major settlement, Bank of America and nine other major
lenders have agreed to pay $8.5 billion to settle claims of wrongfully
foreclosing on millions of American homeowners. The settlement covers a
number of foreclosure abuses including flawed paperwork, robo-signing,
and wrongly modified loans. The settlement will end an independent
review of all foreclosures, meaning the banks could be avoiding billions
of dollars in further penalties. Diane Thompson, a lawyer with the
National Consumer Law Center, criticized the deal, telling the
Associated Press: "[The settlement] caps [banks'] liability at a total
number that's less than they thought they were going to pay going in."

 

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