Several U.S. banks, including Ally Financial, Bank of America, JPMorgan Chase, Citigroup and Wells Fargo, are providing billions of dollars in mortgage relief to homeowners, reports ft.com.
The move comes as part of a settlement with regulators earlier this year, and is aimed to help about 309,000 distressed homeowners, notes ft.com. In total, the banks have agreed to provide $20.1 billion in assistance, with Bank of America paying the most at $8.6 billion.
In some cases, banks are writing down loans they no longer own. This is forcing investors in mortgage-backed securities to absorb large losses. Read more.