10 Banks Agree to Pay $8.5 Billion for Foreclosure Abuse - KTVN Channel 2 - Reno Tahoe News Weather, Video -

10 Banks Agree to Pay $8.5 Billion for Foreclosure Abuse

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Ten major banks and mortgage companies have agreed to pay $8.5 billion to settle complaints that they wrongfully foreclosed on homeowners who should have been allowed to stay in their homes.

Federal Regulators say the banks will pay billions to homeowners to end a review process of foreclosure files that was required under a 2011 enforcement action. The banks mishandled people's paperwork and skipped required steps in the foreclosure process.

Under the settlement, people who were wrongfully foreclosed on could receive from a few hundred dollars up to $125,000.

Advocates estimate that about 400,000 homeowners would be eligible for compensation under the settlement with the Federal Reserve and Office of the Comptroller of the Currency.

Banks involved in the settlement include Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.

Meanwhile, Nevada's state attorney general and the head of a Las Vegas nonprofit consumer counseling agency are unveiling a program aimed at giving distressed homeowners facing foreclosure a one-stop place to seek help.

State AG Catherine Cortez Masto and Financial Guidance Center chief Michele Johnson will be talking about the free "Home Again" program during a news conference on Monday.

Other agencies taking part include Nevada Legal Services and the Legal Aid Center of Southern Nevada, and several federal Housing and Urban Development divisions.

The program aims to help Nevada residents facing foreclosure or who have lost their homes, as well as those seeking loan modifications or who are current but "underwater' on their home loans.

It'll also help people who are working toward home ownership.   (AP)

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