WASHINGTON, April 9 Borrowers whose homes were
in foreclosure in 2009 or 2010 can expect to receive between
$300 and $125,000 under settlements reached between top banks
and U.S. regulators earlier this year.
The payments will begin going out on Friday, the Federal
Reserve and the Office of the Comptroller of the Currency said
The agreements with 13 mortgage servicers, including units
of Bank of America Corp, Citigroup Inc, JPMorgan
Chase & Co, Wells Fargo & Co, provided $3.6
billion in cash payments to borrowers who were at any stage of
the foreclosure process at the height of the housing crisis.
Although regulators entered into the settlements in January,
at the time they only provided estimates of what borrowers might
expect to receive.
On Tuesday the agencies said 1,082 borrowers who were active
duty members of the military had foreclosures completed on their
homes and would receive $125,000 each. About 50 borrowers who
were not in default but had foreclosures completed on their
homes will also receive the top $125,000 payout.
The largest numbers of borrowers, between 300,000 and
750,000, will receive between $300 and $600. Borrowers whose
servicers did not engage with them in assessing loan
modification options will receive $600 if they requested a
review, or $300 if they did not, for example.
Some 4.2 million borrowers are eligible to receive payments,
and checks to 1.4 million of them will be sent out on Friday,