ResCap paying $198M for US foreclosure claims

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WASHINGTON (AP) — Mortgage lender Residential Capital LLC is paying about $198 million to settle federal complaints that it wrongfully foreclosed on homeowners.

The Federal Reserve announced the agreement Friday with the company, known as ResCap. The settlement is similar to accords between federal regulators and 13 other financial firms that ended a review of loan files required under a 2011 government action. The lenders included JPMorgan Chase, Bank of America, Wells Fargo, Citigroup, MetLife Bank, Goldman Sachs and Morgan Stanley. Altogether, they are paying roughly $9.3 billion.

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