Big banks will have to offer billions of dollars more in relief to the communities hardest hit by the financial crisis, as US authorities demand new terms for settling claims of mortgage sales abuses.
The Department of Justice and Department of Housing and Urban Development are adding provisions aimed at directing aid to distressed areas and community redevelopment efforts as they resolve outstanding investigations into mortgage sale abuses.
The change of focus comes as US officials move closer to a record $16bn-plus deal with Bank of America over mis-selling mortgage securities that would push as much as $7bn to homeowners, people familiar with the matter have said.