The agreement could still be announced during the course of monday, wrote the "new york times" and the "wall street journal," among others, citing people in the know.
American banks have been criticized for years for questionable foreclosure methods. The topic is red-hot in the USA because the bursting of the real estate bubble and the ensuing financial and economic crisis caused millions of americans to lose their homes because they could no longer pay their loan installments. Many debtors have lost their homes unfairly, bank regulators say.
Especially the so-called robo-signing had caused an uproar. Translated, this means "robotic signing".
What is meant by this is that, in view of the sheer volume of cases, completely overburdened clerks are said to have taken hardly any time for a thorough examination of the documents, but instead issued the pawn notices in a matter of minutes. In february 2012, a 25 billion dollar settlement was reached between the attorneys general of the u.S. States and major banks such as jpmorgan chase, bank of america and citigroup.
These names are mentioned again now. This time, however, the bank regulator OCC and the central bank fed are sitting on the other side of the negotiating table. In 2011, the authorities had already imposed conditions on the financial companies in the case of house deposits and threatened them with further consequences. Of the new billions, the damaged homeowners were only allowed to receive a part directly, the rest of the sum was used for relief in current credit cases.