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MARGARET WARNER (Newshour): Ten of the country's major banks have agreed to pay $8.5 billion to settle claims that they improperly foreclosed on homeowners during the height of the housing crisis. The companies include giants J.P. Morgan, Bank of America, and Wells Fargo.
The settlement stems from the way they handled some millions of foreclosures during 2009 and 2010. More than $3 billion of that will go in direct payments to borrowers foreclosed on during those years. Another $5 billion is earmarked for other assistance to homeowners who are struggling now.
In a separate housing crisis-linked settlement today, Bank of America also agreed to pay mortgage giant Fannie Mae more than $10 billion to settle claims that it sold Fannie risky mortgages.
For more, I am joined now by two people who track the housing industry from different perspectives.
Guy Cecala is publisher of "Inside Mortgage Finance," a housing industry research publication.
And Diane Thompson is an attorney with the National Consumer Law Center.
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