{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-572d6a42.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-f4d0de30.css\" media=\"all\" /\u003e\n\u003cdiv data-title='10 major banks pay $8.5bn to settle federal complaints of wrongful foreclosures' data-url='/boclips/videos/5c54c0bdd8eafeecae14d020' data-video-url='/boclips/videos/5c54c0bdd8eafeecae14d020' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\n10 major banks pay $8.5bn to settle federal complaints of wrongful foreclosures\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003eFILE: exact date and location unknown1. For sale sign ++MUTE++2. Estate agent with for sale sign ++MUTE++Washington, DC - 7 January 20133. SOUNDBITE (English) Chris Rugaber, Associated Press Economics Writer:\"Today ten big banks and...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003eFILE: exact date and location unknown\u003cbr/\u003e1. For sale sign ++MUTE++\u003cbr/\u003e2. Estate agent with for sale sign ++MUTE++\u003cbr/\u003eWashington, DC - 7 January 2013\u003cbr/\u003e3. SOUNDBITE (English) Chris Rugaber, Associated Press Economics Writer:\u003cbr/\u003e\"Today ten big banks and mortgage servicers settled some long outstanding issues with the federal reserve and federal regulators over shoddy foreclosure practices that many people probably remember from 2010, 2011, the aftermath of the mortgage crisis in which people were foreclosed on with shoddy documents, the \"robosigning\" scandal, where banks had so many foreclosures they didn't really properly handle them.\"\u003cbr/\u003eFILE: exact date and location unknown\u003cbr/\u003e4. Woman packing box\u003cbr/\u003e5. Various woman putting item in box\u003cbr/\u003eWashington, DC - 7 January 2013\u003cbr/\u003e6. SOUNDBITE (English) Chris Rugaber, Associated Press Economics Writer:\u003cbr/\u003e\"So the settlement involves payment of eight and a half (b) billion by the ten banks, with a little over three (b) billion of that going to the affected homeowners, former homeowners, and about five (b) billion going to pay for other forms of assistance like loan modifications.\"\u003cbr/\u003eFILE: exact date and location unknown\u003cbr/\u003e7. Close up of sign reading (English): \"reduced price\"\u003cbr/\u003eWashington, DC - 7 January 2013\u003cbr/\u003e8. SOUNDBITE (English) Chris Rugaber, Associated Press Economics Writer:\u003cbr/\u003e\"From the government's perspective the purpose is to speed up, I think, payments to these affected homeowners. This actually replaces an agreement that was reached in 2011, where the government required the banks to look through all these millions of foreclosure files and make sure they had done it right. And that was taking so long and was expensive and the money wasn't really getting to the homeowners, the homeowners weren't really being helped. So I think the idea here is to speed things up, try to get money to the people who were mistreated. From the bank's perspective it's another step on their part to try to get this whole housing mess off their books and settle all these charges in one way or another.\"\u003cbr/\u003eFILE: exact date and location unknown\u003cbr/\u003e9. Wide of bank liquidation sign ++MUTE++\u003cbr/\u003e10. Close of bank liquidation sign ++MUTE++\u003cbr/\u003eWashington, DC - 7 January 2013\u003cbr/\u003e11. SOUNDBITE (English) Chris Rugaber, Associated Press Economics Writer:\u003cbr/\u003e\"Some consumer advocacy groups aren't too happy with the settlement. They do think the banks are getting off a little bit easy, that they should be paying more. A lot of the individual people who lost their homes, the maximum payment would be 125-thousand under this agreement. Many won't get anything close to that much even. So there will continue to be some, I think, efforts to get the banks to pay a little bit more. This isn't all done yet. But I think this is a big step for the banks to try to get this behind them.\"\u003cbr/\u003eFILE: exact date and location unknown\u003cbr/\u003e12. Close of estate agent sign ++MUTE++\u003cbr/\u003e13. Wide tilt down of building, estate agent sign in foreground ++MUTE++\u003cbr/\u003eTen major banks agreed Monday to pay 8.5 (b) billion US dollars to settle federal complaints that they wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.\u003cbr/\u003eThe banks, which include JPMorgan Chase, Bank of America and Wells Fargo, will pay (b) billions to homeowners to end a review process of foreclosure files that was required under a 2011 enforcement action. \u003cbr/\u003e\"Today ten big banks and mortgage servicers settled some long outstanding issues with the federal reserve and federal regulators over shoddy foreclosure practices,\" said AP Economics writer, Chris Rugaber. \u003cbr/\u003eThe review was ordered because banks mishandled people's paperwork and skipped required steps in the foreclosure process.\u003cbr/\u003eThe settlement was announced jointly by the Office of the Comptroller of the Currency and the Federal Reserve.\u003cbr/\u003e\"The settlement involves payment of eight and a half (b) billion by the ten banks, with a little over three (b)billion of that going to the affected homeowners, former homeowners, and about five (b) billion going to pay for other forms of assistance like loan modifications,\" said Rugaber. \u003cbr/\u003eSeparately, Bank of America agreed Monday to pay 10.3 (b) billion US dollars to government-backed mortgage financier Fannie Mae to settle claims related to mortgages that soured during the housing crash. \u003cbr/\u003eThe agreements are the banks' latest step toward eliminating hundreds of (b) billions of dollars in potential liabilities related to the housing crisis that crested in 2008.\u003cbr/\u003eWhen they release fourth-quarter earnings later this month, the banks hope to reassure investors that they are making progress toward addressing those so-called legacy claims.\u003cbr/\u003eBut advocates say the foreclosure deal allows banks to escape responsibility for damages that might have cost them much more. \u003cbr/\u003eRegulators are settling at too low a price and possibly at the expense of the consumer, they say.\u003cbr/\u003e\"Some consumer advocacy groups aren't too happy with the settlement,\" stated Rugaber, \"They do think the banks are getting off a little bit easy, that they should be paying more. A lot of the individual people who lost their homes, the maximum payment would be 125-thousand under this agreement. Many won't get anything close to that much even.\"\u003cbr/\u003e\"So there will continue to be some, I think, efforts to get the banks to pay a little bit more. This isn't all done yet. But I think this is a big step for the banks to try to get this behind them,\" he added. \u003cbr/\u003eUnder the settlement, people who were wrongfully foreclosed on could receive from 1-thousand up to 125-thousand US dollars. \u003cbr/\u003eFailing to offer someone a loan modification would be considered a lighter offence; unfairly seizing and selling a person's home would entitle that person to the biggest payment, according to guidelines released last summer by the OCC.\u003cbr/\u003eThe agreement covers up to 3.8 (m) million people who were in foreclosure in 2009 and 2010. \u003cbr/\u003eAll will receive some amount of compensation. \u003cbr/\u003eThat's an average of 2,237 US dollars per homeowner, although the payouts are expected to vary widely.\u003cbr/\u003eAbout 3.3 (b) billion US dollars would be direct payments to borrowers, regulators said. \u003cbr/\u003eAnother 5.2 (b) billion US dollars would pay for other assistance including loan modifications.\u003cbr/\u003eThe companies involved in the settlement also include: Citigroup, MetLife Bank, PNC Financial Services, Sovereign, SunTrust, US Bank and Aurora. \u003cbr/\u003eThe 2011 action also included GMAC Mortgage, HSBC Finance Corp. and EMC Mortgage Corp. \u003cbr/\u003eThe deal \"represents a significant change in direction\" from the original, 2011 agreements, Comptroller of the Currency Thomas Curry said in a statement.\u003cbr/\u003eBanks and consumer advocates had complained that the loan-by-loan reviews required under the 2011 order were time consuming and costly without reaching many homeowners. \u003cbr/\u003eBanks were paying large sums to consultants who were reviewing the files. \u003cbr/\u003eSome questioned the independence of those consultants, who often ruled against homeowners.\u003cbr/\u003eCitigroup said in a statement that the bank is \"pleased to have the matter resolved\" and believes the agreement \"will provide benefits for homeowners.\" \u003cbr/\u003eCitigroup expects to record a charge of 305 (m) million US dollars in the fourth quarter of 2012 to cover its cash payment under the settlement. \u003cbr/\u003eThe bank expects that existing reserves will cover its 500 (m) million dollar share of the non-cash foreclosure aid.\u003cbr/\u003eBank of America officials said the agreements were \"a significant step\" in resolving the bank's remaining legacy mortgage issues while streamlining the company and reducing future expenses. \u003cbr/\u003eLeaders of a House oversight panel asked regulators for a briefing on the proposed settlement on Friday. \u003cbr/\u003eRegulators refused to brief Congress before announcing the deal publicly.\u003cbr/\u003e Maryland Congressman Elijah Cummings, the top Democrat on the House Committee on Oversight and Government Reform, said in a statement that he was \"deeply disappointed\" in the regulators' actions.\u003cbr/\u003eHe said regulators have failed to answer key questions about how the settlement was reached, who will get the money and what will happen to others who were harmed by these banks but were not included in the settlement.\u003cbr/\u003eThe settlement is separate from a 25 (b) billion US dollar settlement between 49 state attorneys general, federal regulators and five banks: Ally, formerly known as GMAC; Bank of America; Citigroup; JPMorgan Chase and Wells Fargo.\u003cbr/\u003e\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='action-container flex justify-between'\u003e\n\u003cbutton aria-expanded='false' aria-label='Read more description' class='rp-full-description' type='button'\u003e\n\u003ci class='fai fa-solid fa-align-left'\u003e\u003c/i\u003e\n\u003cspan id='read_more'\u003eRead More\u003c/span\u003e\n\u003c/button\u003e\n\u003cdiv class='rp-report'\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv aria-labelledby='resource-details-heading' class='rp-info-section'\u003e\n\u003ch2 class='title' id='resource-details-heading'\u003eResource Details\u003c/h2\u003e\n\u003cdiv 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