The following article is brought to you by Kent Hoover at BizJournals.Com.
Ten banks accused of deficient mortgage servicing and foreclosure practices — including some of Colorado’s largest — have agreed to provide $8.5 billion in cash payments and other assistance to borrowers under a deal reached with federal bank regulators.
The banks in the agreement include Wells Fargo & Co., JPMorgan Chase & Co. and U.S. Bank, the No. 1, 3 and 4 banks operating in metro Denver by deposits.
Also involved are Aurora, Bank of America, Citibank, MetLife Bank, PNC, Sovereign and SunTrust.
They will make $3.3 billion in direct payments to eligible borrowers and $5.2 billion in other assistance, such as loan modifications and forgiveness of deficiency judgments.
More than 3.8 million borrowers whose homes were in foreclosure in 2009 and 2010 will receive assistance under the agreement. And they will get their money faster — the agreement replaces a case-by-case review of mortgages.
Eligible borrowers should hear from a payment agent by the end of March about the details of their compensation.