Politics
Big banks could be forced to pay $25 billion in foreclosure settlement
2:40 PM on 01/27/2012
Christina Livingston, a supporter of people who had lost their homes to foreclosure, or have been battling banks over loan modification, reacts to cheers from fellow protesters as she is arrested outside a Chase bank branch in downtown Los Angeles Thursday, Dec. 16, 2010. (AP Photo/Reed Saxon)
The nation's largest banks could reach a $25 billion settlement with the Obama administration and the states over allegations of mortgage foreclosure fraud, the Huffington Post reported on Friday.
The Huffington Post said an agreement had not yet been finalized, and Obama administration officials and the banks would not comment. The money would be given to homeowners who were improperly foreclosed on as well as those who can't currently pay for their homes. About one in four American homeowners owe more than their homes are worth, according to Zillow's Real Estate Market Reports
If the settlement is reached, it would be another sign the Obama administration taking a tougher stance on the mortgage issue. The President this week announced that Eric Holder would create a unit that will investigate fraud in the market of residential-backed securities.
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