Wells Fargo (WFC), Bank of America (BAC), JPMorgan (JPM) Forced to Reduce Loan Principal

I'm reporting today from a Wells Fargo (NYSE:WFC) two-day mortgage modification event in Portland, OR. This is the 20th such event WFC has held since September of 2009, meeting face to face with over 19,000 borrowers.

Some borrowers will walk into this convention center today and walk out with a mortgage modification, including payment reductions and possibly even a permanent reduction of mortgage principal.

That last part is particularly pertinent today, amid several reports that government regulators and state attorneys general are nearing a $20 billion settlement with the big banks that would force more loan principal reduction.

This in the wake of the so called "robo-signing" foreclosure paperwork scandal last fall.

Other banks like Bank of America (NYSE:BAC), Citigroup (NYSE:C) and JPMorgan (NYSE:JPM) could be strongly affected by the decision.





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