The government has filed a $25 billion settlement with the five largest mortgage lenders in federal court, putting an official stamp on the landmark agreement announced last month over alleged foreclosure abuses.
The court papers offered new details on the deal between the federal government and 49 states and Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial.
As previously announced, the banks will reduce loans for about 1 million of the 11 million U.S. households that owe more on their mortgages than their homes are worth. They will also send checks to homeowners who were improperly foreclosed on.
But the banks didn’t admit wrongdoing as part of the settlement. Federal and state law-enforcement authorities could still pursue criminal action against them, the government says.