WASHINGTON — A $25 billion settlement between the nation’s major banks and U.S. states over deceptive foreclosure practices during the housing crisis is nearing completion.
Five major banks — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial (formerly GMAC) — and U.S. states are “very close,” Housing and Urban Development Secretary Shaun Donovan said Wednesday.
Separately, two officials briefed on internal discussions say a proposed deal could be announced within weeks. Negotiators are finalizing a draft of the agreement, which must be reviewed by state attorneys general. Under the deal, banks would pay states and the federal government, which would fund programs to compensate homeowners.
The two officials asked to remain anonymous because they were not authorized to speak publicly about the deal.
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