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The Boston Globe

Business

Taxpayers will ease banks’ costs in mortgage deal

WASHINGTON — Consumer advocates say mortgage lenders are getting off easy in a deal to settle charges they wrongfully foreclosed on many homeowners. Now it turns out the deal is even sweeter for the lenders than it appears: Taxpayers will subsidize them for the money they’re ponying up.

The Internal Revenue Service regards the lenders’ compensation to homeowners as a business cost. The result: It’s fully tax-deductible.

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