DEREK KRAVITZ,AP Real Estate Writer
WASHINGTON (AP) – Federal officials say a deal has been reached between states and the nation’s biggest mortgage lenders over foreclosure abuses.
The Justice Department said Thursday that the settlement will be announced at a 10 a.m. EST news conference.
Five major banks – Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial – will pay roughly $26 billion to reimburse American homeowners and overhaul their industry.
The nationwide settlement stems from abuses that occurred after the housing bubble burst. Many companies that process foreclosures failed to verify documents. Some employees signed papers they hadn’t read or used fake signatures to speed foreclosures – an action known as robo-signing.