US mortgage deal closer

City A.M. Reporter
US STATE and federal officials are nearing a deal with the nation’s five largest mortgage lenders to settle claims of foreclosure that drove people out of their homes.

Democratic state attorneys general and Obama administration officials met yesterday in Chicago to discuss the terms of the settlement.

People familiar with the talks have said Bank of America, Wells Fargo, JPMorgan Chase, Citigroup and Ally Financial would provide between $19bn ((£12.2bn) to $25bn of relief.

A spokesman for Iowa attorney general Tom Miller, who is leading the talks on behalf of the states, said the negotiators had “a good informational meeting”.

Two Democratic lawmakers also joined representatives of several activist groups to call for a deeper investigation into mortgage abuses, after critics said the deal released the banks from too many claims.