The nation's largest banks have offered a counter-proposal to settle claims by federal and state regulatory officials related to improper mortgage-servicing practices. The Wall Street Journal reports that the proposal indicates that the banks would be willing to pay up to $5 billion to settle the claims.
Initially, federal regulators and state attorneys general had sought $20 million from the banks to reduce loan balances on troubled loans and compensate borrowers previously wronged by improper foreclosure practices. The fund could also provide transition assistance for borrowers who do get removed from their homes, possibly in the form of several months of rent coverage.
The banks, which include Bank of America, JP Mortgage, Citigroup, Wells Fargo and Ally Financial, have reportedly begun meetings this week to discuss the latest proposal