In a very closely watched match, several U.S. Banks are seeking to broker a deal with state attorneys general, in an effort to avoid billions in court claims over faulty foreclosure seizures.
The banks in talks include, Bank of America Corp. (BAC), Wells Fargo & Co. (WFC), JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and Ally Financial Inc.
The proposed deal on the table includes options such as paying penalties, pledging relief to home buyers, which can include reducing loan principal, cutting fees or paying moving costs.
Settling the documentation lapse during home seizures is at the forefront for state and federal officials. The attorneys general told the banks earlier this week that they face an estimated $17 billion in civil case court claims. The banks had initially offered to settle the improper foreclosure claims for $5 billion.