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March 14, 2012

Banks to Pay New York $25 Million for Mortgage Abuses 
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Five major banks have agreed to pay the state of New York a combined $25
million over claims of deceptive and illegal practices in their use of
an electronic mortgage database. JPMorgan Chase, Bank of America, Wells
Fargo and Citigroup will pay $5.9 million each, while Ally Financial
will pay $1.25 million. New York Attorney General Eric Schneiderman had
sued three of the banks last month over their use of the database,
accusing them of improperly foreclosing on homes. The state said it will
continue to pursue claims for damages suffered by the state’s
homeowners and will use the money to address foreclosures and other
housing issues. The deal follows a $25 billion settlement reached last
month between banks and 49 states over faulty foreclosure and mortgage
practices that helped sink the nation’s economy.



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