State prosecutors investigating mortgage malpractice have offered to limit legal liability in exchange for a multibillion-dollar payout, according to the Financial Times. The states are investigating whether banks like Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup broke laws by using “robo-signers” to sign off on foreclosure paperwork without actually reviewing the documents. If the deal is accepted, the payment is expected to be in the $10 billion to $25 billion range.
Read it at Financial Times
