(Reuters) - As the government nears a deal with top banks to resolve mortgage abuses, the Justice Department has begun reaching out to other banks to gauge their interest in joining the wide-ranging settlement, according to a person familiar with the matter.
The DOJ has contacted several nationally chartered banks to determine whether they might agree to terms similar to those in the proposed deal, the person said.
State and federal officials are nearing a settlement with the five largest mortgage servicers - Bank of America Corp, JPMorgan Chase & Co, Wells Fargo & Co, Citigroup Inc and Ally Financial Inc- to resolve allegations of misconduct in processing foreclosures and other issues.
In exchange for between $20 billion to $25 billion in relief to distressed homeowners, the banks will put behind them potential government lawsuits about improper foreclosures and abuses in originating and servicing the loans.
In recent weeks Justice officials have approached several other banks about joining the settlement, a move that could potentially push up the total price tag.
The additional banks are expected to include those that entered into consent orders last year with U.S. bank regulators over similar allegations. That group includes HSBC Holdings Plc PNC Financial Services Group Inc, MetLife Inc, SunTrust Bank, U.S. Bancorp , OneWest Bank, Sovereign Bank and Aurora Bank.
The DOJ has contacted several nationally chartered banks to determine whether they might agree to terms similar to those in the proposed deal, the person said.
State and federal officials are nearing a settlement with the five largest mortgage servicers - Bank of America Corp, JPMorgan Chase & Co, Wells Fargo & Co, Citigroup Inc and Ally Financial Inc- to resolve allegations of misconduct in processing foreclosures and other issues.
In exchange for between $20 billion to $25 billion in relief to distressed homeowners, the banks will put behind them potential government lawsuits about improper foreclosures and abuses in originating and servicing the loans.
In recent weeks Justice officials have approached several other banks about joining the settlement, a move that could potentially push up the total price tag.
The additional banks are expected to include those that entered into consent orders last year with U.S. bank regulators over similar allegations. That group includes HSBC Holdings Plc PNC Financial Services Group Inc, MetLife Inc, SunTrust Bank, U.S. Bancorp , OneWest Bank, Sovereign Bank and Aurora Bank.
No comments:
Post a Comment