Banks Near $25 Billion Pact on Foreclosure Probe

Government officials are on the verge of an agreement worth as much as $25 billion with five major banks, capping a yearlong push to settle federal and state probes of alleged foreclosure abuses by lenders.

The deal would represent the largest government-industry settlement since a multistate deal with the tobacco industry in 1998.

The agreement covers five banks: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. Together, the five handle payments on 55% of all outstanding home loans, or about 27 million mortgages, according to Inside Mortgage Finance.

READ THE WALL STREET JOURNAL ARTICLE HERE

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