The vast majority of borrowers being compensated for mortgage-related abuses will get $1,000 or less apiece, a sobering conclusion to a protracted attempt to help those who may have been placed into foreclosure as a result of banks' mistakes, the Wall Street Journal reported today. About 4 million borrowers will share $3.6 billion in cash as part of a settlement between federal regulators and banks accused of foreclosure-processing mistakes. U.S. regulators said yesterday that banks wrongfully took away homes from 1,082 borrowers who were members of the U.S. military. Another 53 borrowers were found to have lost their homes despite not actually defaulting on their loans. Those 1,135 individuals will receive checks of $125,000. Most borrowers, however, will see far less, with about 80 percent receiving checks ranging from $300 to $1,000, according to data released by the Office of the Comptroller of the Currency and the Federal Reserve.
