$25B Nationwide Foreclosure Fraud Settlement Filed

Bloomberg reports:

• The $25 billion agreement with five banks to end federal and state probes into abusive foreclosure practices was filed in U.S. court in Washington, capping negotiations over claims of misconduct after the housing bust.



• The agreement subjects the lenders to monitoring by officials plus penalties of as much as $1 million for each violation, the U.S. Justice Department said. The consent judgments will be in effect for 3 1/2 years, according to the settlement terms.



• The Justice Department today filed in federal court the proposed settlements along with a civil complaint against Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and three other banks. The agreement needs approval from a federal judge.

For more, see Foreclosure Settlement With Banks Filed in Federal Court.

See also, Firedoglake: HUD IG Report Released With Settlement Details Servicer Abuse Directed From the Top.