Wall Street Predicts $50 Billion Bill to Settle U.S. Mortgage Suits

January 10, 2014
New York Times  
mortgage lending news

Wall Street banks anticipate that they will have to pay almost $50 billion to ease the scrutiny of federal authorities investigating their role in the mortgage meltdown, according to a confidential analysis of the industry's potential legal exposure.

The banks and their outside attorneys have been quietly using JPMorgan Chase's record $13 billion settlement two months ago as the de facto standard in calculating how much each might have to fork over in order to put federal mortgage litigation behind them. Should such settlements come to pass, they could yield as much as $15 billion in relief for consumers in the form of cash payments, reductions in the size of homeowners' loan payments, and other assistance.

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