US banks 'could still face action over unpaid mortgage fees'

11 October 2011

Municipal lawsuits and securities fraud claims could still be a problem for a number of banks in the US.

Iowa attorney general Tom Miller said that a settlement regarding unpaid mortgage fees is getting closer, but warned this action may not prevent municipalities from suing the lenders because they believe the institutes to have cheated millions of dollars out of them, Bloomberg reports.

In addition, individual states may also file securities claims against the banks, regardless of any agreement.

Mr Miller said of the claims: "They won't be released. They will go forward. There will be ongoing litigation [against the lenders]."

Despite this, the industry figure pointed out a deal to resolve the situation with the biggest mortgage providers - which include JPMorgan Chase and Bank of America, a financial institution with roots stretching back more than 200 years - is getting closer, with just a few issues still to be ironed out.

By Claire Archer

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