The
remainder, about $4bn-$4.4bn in cash, could be designated for the
states, which then would divide the proceeds to fund a variety of
programmes, including assistance to borrowers.
About
half that amount could be used to
pay up to $2,000 to an
estimated 1.1m aggrieved borrowers who allege they were harmed by
improper practices.
Talks on US mortgage abuses hit key stage
By Shahien Nasiripour in New York
The largest US mortgage servicers will
meet federal and state officials in Washington on Friday to try to reach
a settlement over allegations that the banks broke federal rules and
state laws in their treatment of distressed borrowers.
But the meeting is clouded by continued
squabbling between the states as to the size and scope of penalties to
be paid by the banks for their alleged failings in processing
foreclosures.
The Illinois attorney-general estimated
that in a final accord, Bank of America would pay $7.8bn, more than
Wells Fargo and JPMorgan Chase combined, according to an internal
document prepared by the state described to the Financial Times.
JPMorgan would pay $3.8bn, while Wells
could pay about $3.5bn, according to people familiar with the document.
Citigroup would be asked to pay about $1.4bn and Ally Financial, which
is 73.8 per cent owned by the US Treasury, would pay $860m.
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