State attorneys general announced Tuesday that if a settlement is not reached, some of the nation’s largest banks will face potential liability costs amounting to $17 billion; these potential civil lawsuits have been rendered in regard to improper foreclosure practices, said Wall Street Journal.
Since the accusations initiation a few months ago, banks and federal officials have set out to settle, with the banks proposing a $5 billion settlement to cover compensation, while federal officials have an amount nearing $20 billion in mind; in addition, the U.S. Trustee Program is requesting up to $1 billion in penalties said The Real Deal.
The authenticity of foreclosure documents and the inability to assist the growing amount of homeowners in need are just some of the areas being scrutinized.
With over 872,000 bank-owned homes, the foreclosure market is one of increasing concern.