Markets Pull Back After Last Week’s Gains; Foreclosure Settlement Affects Bank Shares
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Hemera/Thinkstock(NEW YORK) — U.S. markets cooled off Monday after last week’s surge to their highest weekly advancements in over a year.
Investors took profits from last week’s run-up, after the S&P reached levels not seen since the start of the Great Recession. The S&P and Nasdaq are up more than four percent since Jan. 1. Things could change this week as corporate earnings season kicks off Tuesday.
The Dow lost 51 points to close at 13,384. The Nasdaq closed down three points, and the S&P lost nearly five points.
About 400,000 homeowners, who lost their homes to foreclosure, will be eligible for compensation under a settlement between federal regulators and 10 major banks and mortgage companies. The banks agreed to pay $8.5 billion to settle complaints of mishandled paperwork and skipped steps in the foreclosure process. Some of the homeowners could receive up to $125,000 with others claiming just a few hundred dollars.
Bank of America said it would pay mortgage lender Fannie Mae $3.6 billion and buy back $6.8 billion in loans to settle mortgage claims from the housing meltdown.
Bank of America stock dipped down 0.17 percent after the settlement’s announcement, while Fannie Mae shares inched higher by 12.17 percent.
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