Lenders penalized for improper foreclosures
The federal government on Wednesday ordered 16 of the nation's largest mortgage lenders and servicers to reimburse homeowners who were improperly foreclosed upon.
Government regulators also directed the financial firms to hire auditors to determine how many homeowners could have avoided foreclosure in 2009 and 2010.
Citibank, Bank of America, JPMorgan Chase and Wells Fargo, the nation's four largest banks, were among the financial firms cited in the joint report by the Federal Reserve, Office of Thrift Supervision and Office of the Comptroller of the Currency.
The other lenders and service providers cited by the agencies include: Ally Financial Inc., Aurora Bank, EverBank, HSBC, MetLife Bank, OneWest Bank, PNC, Sovereign Bank, SunTrust Banks, U.S. Bank, Lender Processing Services and MERSCORP.
The Fed said it believes financial penalties are "appropriate" and that it plans to levy fines in the future. All three regulators said they would review the foreclosure audits.
In the four years since the housing bust, about 5 million homes have been foreclosed upon. About 2.4 million primary mortgages were in foreclosure at the end of last year. An additional 2 million were 90 days or more past due, putting them at serious risk of foreclosure.
Elsewhere
•Audio equipment businessman Sidney Harman, who bought Newsweek magazine last year and oversaw its merger with The Daily Beast, has died in Washington. He was 92. A family statement posted on The Daily Beast website says Harman died Tuesday night of complications from leukemia. Harman is the founder of Stamford, Conn.-based Harman International Industries.
•Consumer-packaging maker Silgan Holdings Inc. said Wednesday that it will acquire Graham Packaging Co. in a cash-and-stock deal valued at $1.28 billion. The companies say the deal will save on costs and create a stronger force in packaging for beverage, food and consumer products ranging from sports drinks and beer to personal care products and motor oil.
•American Airlines raised the stakes in its battle with ticket sellers by suing travel website Orbitz and distributor Travelport Ltd., accusing them of monopoly tactics. American says the companies are trying to control the distribution of airline tickets to business travelers and are retaliating against American for objecting. Orbitz and Travelport denied the allegations. American's antitrust lawsuit, filed this week in federal district court in Texas, is the latest twist in an ongoing battle that led American to pull its flight listings from Orbitz last December.
•The New Hampshire Supreme Court is weighing the question, "What is a cigarette?" Retailer North of the Border Tobacco drew the attention of state investigators in 2009, when it installed machines that can roll 200 cigarettes in 10 minutes. Customers buy loose tobacco and rolling tubes from the retailer's store and then pay to use the machines. State lawyers argue customers leave with cigarettes that didn't exist when they walked into the store. They say that makes the retailer a cigarette manufacturer that should be paying into a national fund that helps states offset the Medicaid costs of tobacco-related illnesses. The retailer's lawyers say what goes into the rolling machines already is a cigarette so nobody's manufacturing anything. The justices didn't indicate Wednesday when they would rule.
From wire reports
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