Banks are hashing out a $10 billion settlement with federal regulators to halt a lengthy process of reviewing thousands of foreclosure cases for errors, after both sides concluded it was too expensive and not delivering enough assistance, the Wall Street Journal reported today. The potential agreement, which has yet to be completed, came after large banks voiced concerns with a process set up by the Office of the Comptroller of the Currency and the Federal Reserve over foreclosure-related abuses that surfaced more than two years ago. The banks were required by regulators in April 2011 to conduct an exhaustive review of foreclosures and to compensate consumers in cases where consumers could demonstrate an error. Banks had already spent around $1.3 billion on consultants hired to manage this process, with another $2 billion to $3 billion in spending expected.
