Bank of America (BAC), JPMorgan (JPM), Citigroup (C), Wells Fargo (WFC) and Foreclosure Settlements

Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) are among American banks expected to have been sent a proposal from federal agencies and state attorneys general on foreclosure practices and any possible penalties that may be sought in the matter.

The 27-page document given March 3 to mortgage-servicers seeks “a binding legal requirement” for how they service loans and conduct home foreclosures, Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, said Thursday.

“This is a document that sets a foundation for negotiations with the nation’s largest servicers,” he said. Greenwood wouldn't identify the banks or say how many received the proposal, made by states and U.S. agencies including the Justice Department, Federal Trade Commission and Department of Housing and Urban Development.

The states and federal agencies haven’t yet agreed on the monetary penalties they will seek from the companies, according to a person familiar with the matter who declined to be identified because the talks are private. The government officials also are discussing a proposal for loan-modification procedures, the person said.

Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and Ally Financial Inc. said in their annual reports that they may have to pay fines and penalties. The payments may be “material,” Charlotte, North Carolina-based Bank of America and New York- based JPMorgan said.

Bank of America closed Friday at $14.12, down $0.15, or 1.05 percent. JPMorgan closed at $45.52, down $0.56, or 1.22 percent. Citigroup closed at $4.54, down $0.14, or 2.99 percent. Wells Fargo closed at $31.91, falling $0.50, or 1.54 percent.




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