Fed Fines Five Banks $766.5 Million in Mortgage Settlement

Feb. 9 (Bloomberg) -- The Federal Reserve announced it will fine five banking organizations a total of $766.5 million as part of a broader settlement over foreclosure actions.

“The monetary sanctions would be assessed for unsafe and unsound processes and practices in residential mortgage loans servicing and foreclosure processing,” the Fed said in a statement today in Washington. The five parent holding companies are Bank of America Corp., Citigroup Inc., Ally Financial, Inc., JPMorgan Chase & Co. and Wells Fargo & Co.

The Fed said it is acting in conjunction with a settlement agreed in principle between the five banking organizations, state attorneys general and the Department of Justice.

Under the Fed’s sanctions, Bank of America will pay $175.5 million, Wells Fargo will pay $87 million, JPMorgan Chase $275 million, Citigroup $22 million and Ally Financial pay $207 million.

-- Editor: Gail DeGeorge, Christopher Wellisz

To contact the reporter on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net