The banks are currently negotiating a settlement with Federal and state regulators over foreclosure practices that is expected to hit over $20 billion, with Bank of America likely to bear the biggest share of the costs.

The settlement is however seen as crucial to banks in order for them to be able to resume the foreclosure process and reduce their exposure to legacy troubled mortgages.

--Written by Shanthi Bharatwaj in New York

To contact the writer of this article, click here: Shanthi Bharatwaj.

>To follow the writer on Twitter, go to http://twitter.com/shavenk.

>To submit a news tip, send an email to: tips@thestreet.com.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

If you liked this article you might like

Your Complete Guide to Living Like Billionaire Warren Buffett

How to Get Rich Using Warren Buffett's Favorite Stock Market Indicators

How to Make Your Life Successful Just Like Billionaire Warren Buffett

With the Fed, It's Different This Time

How to Live Just Like Billionaire Warren Buffett