Wells (WFC) (BAC) (C) (JPM) Ordered to Reimburse Homeowners

Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Citigroup (NYSE:C) and JPMorgan (NYSE:JPM) were among 15 banks ordered to reimburse homeowners who were wrongfully foreclosed upon. Two services were among those ordered to reimburse the victims.

The lenders were also ordered by the Federal Reserve, Office of Thrift Supervision and Office of the Comptroller of the Currency to hire auditors to ensure other foreclosures in 2009 and 2010 were properly done.

Other lenders picked out by the agencies include , Ally Financial Inc., Aurora Bank, Citibank, EverBank, HSBC (NYSE:HBC), MetLife Bank, OneWest Bank, PNC (NYSE:PNC), Sovereign Bank, SunTrust Banks (NYSE:STI) and U.S. Bank, and the service providers Lender Processing Services and MERSCORP.

Citi (C) Changes Check Clearing Policy

In an effort to placate customers who have complained about check-clearing policies at banks, including Citi (NYSE:C), the giant bank will start to clear the smaller checks it receives first in an effort cut back on overdraft charges.

Starting on July 25, according to an internal memo at the company, processing of checks will begin with the smaller amounts and graduate higher. That should protect customers from being charges with mulitiple overdrafts, or at least minimize the probability.

The standard practice in the industry of processing larger checks first typically can result in multiple overdraft fees being issued on checking accounts.

Citi doesn't offer overdraft protection on its ATM or debit card transactions and withdrawals.

Banks must now get permission from customers to offer overdraft protection before it can be implemented.

Citigroup was trading at $4.41, down $0.04, or 1.01 percent, as of 12:19 PM EDT.

Businesses Offered Free Checking By Citibank (NYSE:C)

Citibank (NYSE:C) announced today they're offering businesses free checking for existing and new business customers for 1 year.

Terms of the deal are businesses will have to open an account like a CitiBusiness Streamlined or Flexible Checking account, or another cash management product for a year to receive the free checking service. They also must deposit at least $500 in a new account to qualify.

Finally, they can also choose to pay five bills with CitiBusiness Online as an alternative way to qualify.

For businesses with existing accounts at Citibank, they qualify by enrolling in one of the bank's cash management services.

Citigroup, the parent of Citibank, broke through the $5.00 mark today, trading at $5.03, up $0.09, or 1.72 percent, as of 11:34.

Citibank (NYSE:C) Reaches Agreement with Spain

Clients who lost money because of investments in Citibank (NYSE:C) will be compensated, as the bank agreed to pay about $80 million to the alleged victims.

This is in relationship to clients of Lehman, which Citibank was marketing their products to those in the country with modest savings and supposedly wasn't in their best interests to invest in.

Oddly, many of those being compensated weren't even Lehman clients, but the banks of some of the people had invested in the products, which caused losses when Lehman collapsed.

Those who agree to the deal will receive their money up till May 7.

Most of those affected by the failure of Lehman Brothers are expected to take the offer.