WASHINGTON — Ten major banks and mortgage companies have agreed to pay $8.5 billion to settle complaints that they wrongfully foreclosed on the loans of homeowners who should have been allowed to stay in their homes.
Federal Regulators say the settlement ends a review process of foreclosure files required under a 2011 enforcement action. The banks mishandled paperwork and skipped required steps in the foreclosure process.
Advocates estimate that about 400,000 people are eligible for compensation of a few hundred dollars, up to $125,000.
Read tomorrow's Arkansas Democrat-Gazette for full details.