Mortgage Lenders Forced to Pay $26 Billion in Foreclosure Settlement

Five major banks will pay $26 billion dollars to end a nationwide investigation that has revealed abusive foreclosure practices that they utilized in the wake of the housing market crisis.

According to Bloomberg, the Department of Housing and Urban Development and the U.S. Justice Department are set to announce the end of the 16-month investigation. The settlement requires the backs to provide cash for states, aid to borrowers by providing them with mortgage debt forgiveness, short sales and forbearance as well as helping homeowners to refinance to lower interest rates.

Some of the banks included in the settlement include Bank of AmericaCitigroup Inc. and Wells Fargo.

If nine other major mortgage servicers sign on the agreement, the total amount of the settlement could grow to $40 billion, according toBloomberg.

If you or a loved one has been wronged by consumer fraud, you may be entitled to compensation. Contact Sokolove Law for a free legal consultation and to find out if you have grounds to pursue legal action.