A federal judge has approved the $25 billion national joint federal-state settlement with five top U.S. banks over mortgage foreclosure abuses and fraud and unacceptable nationwide mortgage servicing practices.
According to court documents, U.S. District Judge Rosemary Collyer in Washington signed consent judgments with the banks.
Under the settlement reached with the federal government and 49 states, the five banks -- Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC), Citigroup Inc. (C) and Ally Financial Inc. -- have agreed to a $25 billion penalty under a joint state-national settlement structure.
As per the settlement structure, the banks have committed a minimum of $17 billion directly to borrowers through a series of national homeowner relief effort options, including principal reduction. The have committed another $3 billion to an underwater mortgage refinancing program. The banks will also pay $5 billion to the states and federal government - $4.25 billion to the states and $750 million to the federal government.
The settlement was announced in February.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.