The New York Times is reporting that federal regulators and 14 banks are in talks on a $10 billion settlement designed to end the government's efforts to prosecute the lenders for alleged foreclosure abuses.
The Times, citing ‘people with knowledge of the discussions,’ reports that under the terms of the settlement, $3.75 billion would be allocated to people who have already lost their homes. However, it is not clear how many former and current homeowners would receive compensation, nor is it certain when or how the funds would be allocated.
The formal announcement of the settlement, which has reportedly been in the works over the past month, could be expected as early as this week.
