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CHARLOTTE, N.C./NEW YORK (Reuters) – Bank of America, Citigroup and author metropolis -- threesome of the large banks in the United States -- said they could grappling fines from a restrictive enquiry into the industry's foreclosure practices.

The statements, prefabricated in restrictive filings on Friday, are the most candid admission still from field banks that they could hit to clear significant amounts of money to resolve probes and lawsuits alleging that they improperly foreclosed on homes.

Bank of USA Corp (BAC.N), the maximal U.S. slope by assets, said the enquiry could advance to "material fines" and "significant" jural expenses in 2011.

Wells metropolis & Co (WFC.N), the maximal U.S. mortgage lender, said it is probable to grappling fines or sanctions, such as a foreclosure moratorium or suspension, imposed by federal or land regulators. It said whatever polity authority enforcement state was probable and could include civil money penalties.

Citigroup Inc (C.N) said it could clear fines or set up capital change programs.

The large U.S. mortgage lenders are existence investigated by 50 land attorneys generalized and U.S. regulators for foreclosing on homes without having comely paperwork in locate or without having properly reviewed paperwork before language it.

The intense substantiation threatens to andante down the foreclosure impact and quash whatever repossessions.

Sources old with discussions among federal authorities hit said they could seek as such as $20 1000000000 in total from lenders to resolve the foreclosure probe, which began terminal fall.

Analysts said the acknowledgment of possibleness foreclosure liabilities highlights the continuing struggles of the maximal U.S. banks after the world business crisis.

"Are they trying? Sure, but this is not an easy mend and these kinds of problems are feat to secure around the banks for years," said Matt McCormick, a portfolio trainer with Cincinnati-based Bahl & Gaynor Investment Counsel.

McCormick said he has oversubscribed nearly every of his U.S. slope holdings because of concerns over foreclosures and another losses.

Beyond candid fines cod to regulators, banks may also modify up paying government-controlled mortgage giants Freddie Mac and Fannie Mae for the foreclosure delays.

Bank of USA said it transcribed $230 meg in compensatory fees in the fourth lodge that it expects to owe the polity mortgage companies.

The slope said its sticking costs for settlements for every jural matters it is facing, including mortgage issues, could be $145 meg to $1.5 1000000000 beyond what it has already reserved.

Wells metropolis said that in the worst-case scenario, as of the modify of 2010, it could hit to clear $1.2 1000000000 more than it has set divagation to counterbalance jural matters.

Citigroup said it could grappling up to most $4 1000000000 more in losses from every sorts of lawsuits, including but not restricted to those relating to mortgages and foreclosures.

Wells metropolis said in Oct that it plans to amend 55,000 foreclosure filings nationwide, amid signs that substantiation for whatever foreclosures was half or incorrect. Other banks prefabricated similar moves.

Other banks echoed the anxiety over foreclosures in a wave of period report filings with the Securities and Exchange Commission on Friday.

Atlanta-based SunTrust said it expects regulators may supply a consent order, which will order the maximal mortgage lenders to mend problems with their foreclosure processes, and potentially levy fines.

Wells metropolis shares winking 3.1 proportionality higher at $32.40 on the New York Stock Exchange. Bank of USA shares winking 1.6 proportionality higher at $14.20 and Citi shares winking 0.2 proportionality higher at $4.70, also on the New York Stock Exchange.

(Reporting by Joe Rauch, Clare solon and Maria Aspan; Editing by metropolis Hill)

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