Saturday, January 5, 2013

Settlement

"A U.S. congressional oversight panel asked regulators to delay a multibillion dollar mortgage settlement with 14 large banks so that the lawmakers could review the deal, according to a letter made available on Saturday.

"We would like more information about how the potential settlement amount is to be determined in light of the potential wrongdoing identified to date," said the January 4 letter to Federal Reserve Chairman Ben Bernanke and the Comptroller of the Currency Thomas Curry.

The top Republican and Democratic lawmakers on the House of Representatives Oversight Committee asked regulators how aid may be distributed and in what form, and what may happen to homeowner files that are still awaiting review.

The Wall Street Journal reported that the Federal Reserve was holding up the settlement with banks to resolve allegations that they unlawfully cut corners when foreclosing on delinquent borrowers.

The settlement with five big banks - Bank of America, Wells Fargo & Co, JPMorgan Chase & Co, Citigroup Inc and Ally Financial - would be part of a larger deal that the Office of the Comptroller of the Currency hopes will include 14 banks and total about $10 billion, a source told Reuters last week"

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