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The Boston Globe

Business

Banks will pay $8.5b over wrongful foreclosures

‘Robosigning,’ other abuses hurt homeowners

WASHINGTON — US banks have taken another step to clear away the wreckage of the 2008 financial crisis by agreeing to pay $8.5 billion to settle charges that they wrongfully foreclosed on millions of homeowners.

The deal announced Monday could compensate hundreds of thousands of Americans whose homes were seized because of abuses such as ‘‘robosigning,’’ when banks automatically signed off on foreclosures without properly reviewing documents. The agreement will also help eliminate huge potential liabilities for the banks.

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