Judge signs mortgage settlement agreement
A federal judge approved a $25 billion mortgage settlement with five top U.S. banks over allegations of foreclosure abuses and misconduct in servicing home loans, according to court documents. U.S. District Judge Rosemary Collyer signed the previously announced series of settlements on Wednesday but the approval was not made public until Thursday, Reuters reported. The civil allegations were brought by 49 states and the federal government. The banks did not admit to the accusations. Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Wells Fargo & Co. and Ally Financial Inc. each agreed to pay approximately $5 billion in cash to the federal and state governments. They also agreed to cut mortgage debt amounts and restructure troubled loans from the pool of loans they service to meet the rest of their monetary obligations under the settlement.