Banks to pay $8.5 billion in foreclosure settlement

Published On: Jan 08 2013 11:15:53 AM EST

Ten of America's biggest banks have agreed to an $8.5 billion dollar settlement over alleged foreclosure abuses.

The deal, announced Monday, was brokered by the Federal Reserve and the Office of the Comptroller of the Currency.

It requires the ten banks to pay more than $3 billion in direct payments to mortgage borrowers who were foreclosed on in 2009 and 2010.

In addition, the banks have also agreed to pay more than $5 billion in assistance to those borrowers.

The banks involved in the deal are Aurora, Bank of America, Citibank, JPMorgan Chase, MetLife Bank, P-N-C, Sovereign, SunTrust, U-S Bank, and Wells Fargo.