Minnesota eligible for $280 million from national mortgage settlement

The deal stems from a long-running investigation into poor foreclosure practices among the country's largest mortgage lenders. Five banks, including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, agreed to pay about $26 billion to reimburse American homeowners. This is the biggest government-industry settlement since the 1998 multi-state tobacco industry deal.
Author:
Updated:
Original:

The deal stems from a long-running investigation into poor foreclosure practices among the country's largest mortgage lenders. Five banks, including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial, agreed to pay about $26 billion to reimburse American homeowners. This is the biggest government-industry settlement since the 1998 multi-state tobacco industry deal.

Next Up

Related

Settlement: Every Ticketmaster online customer from past 12 years eligible for refund

Did you buy tickets through Ticketmaster's website between Oct. 21, 1999 and Oct. 19 of this year? If so, you've got money coming. Well, vouchers at least. Business Insider says Ticketmaster will refund $1.50 per ticket order in a proposed settlement of a class-action lawsuit. The ticket giant was sued for allegedly profiting off its "processing fees" without disclosing the fact to ticket-buyers.

Minnesota Somalis threaten to pull money from banks

Hundreds of Somalis gathered in Minneapolis Saturday urging lawmakers and banks to find a resolution so they can continue to send money to loved ones in East Africa countries. Some banks have stopped the service with concerns the money is going to help terrorist organizations. As many as 500 Somali Minnesotans have threatened to close their accounts without a solution.

Berkshire offers to buy Bloomington-based ResCap mortgages

Warren Buffett's Berkshire Hathaway Inc. is eyeing a $374 billion mortgage-servicing portfolio of Residential Capital LLC. The bankrupt lending unit, a subsidiary of government-owned Ally Financial, filed for Chapter 11 protection in May. Dow Jones News Wires reports Minnesota-based ResCap already has a proposed agreement to sell the mortgage unit to NationStar Mortgage Holdings Inc. Berkshire says it will match the $2.4 billion bid, but offer a lower breakup fee.

Trustee to recover $8.4 million from Tom Petters' former employees

The bankruptcy trustee in the case has struck deals with 30 of the fraudster's former employees. The deals include some sizable settlements with former executives. The money will eventually be redistributed to victims of the multi-billion-dollar Ponzi scheme. Tom Petters is serving a 50-year sentence.