Some of the biggest banks in the United States are about to settle state and federal claims over faulty, and fraudulent foreclosures. The target date for the settlement with Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Ally Financial is Wednesday, July 13, 2011.
The settlement is expected to exceed $20 billion, forming state and federal funds to provide relief to mortgage borrowers. The case has been focused on how banks treated customers during the rise in mortgage defaults. This case is just one in many cases regarding issues of negligent, faulty, and possibly criminal activity related to mortgage and foreclosures.
Some of the issues that are related include compensating people whose homes were improperly seized. Other issues include the institution of funds for states including Ohio to resolve civil mortgage complaints as well as a separate federal account that would require them to provide a specific amount of mortgage relief to borrowers.
I will be thrilled when this is settled as it is just one more piece of the puzzle that we need to put the Ohio economy back on track, but I am sure that whether they meet the deadline of Wednesday or not, we will be hearing about this topic for quite some time to come.