Foreclosure Abuse Settlement Update

Foreclosure Abuse Settlement Update

KEY PROVISIONS OF THE SETTLEMENT

Immediate aid to homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and other forms of loan modification relief nationwide.

State attorneys general anticipate the settlement’s requirement for principal reduction will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread defaults by borrowers who really can afford to pay.

Immediate aid to borrowers who are current, but whose mortgages currently exceed their home’s value. Borrowers will be able to refinance at today’s historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief nationwide.

The lenders are:

Ally/GMAC
Bank of America
Citi
JPMorgan Chase
Wells Fargo

Payments to borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process we be distributed in the amount of $1.5 billion will be distributed nationwide to eligible borrowers .

The National Mortgage Settlement Administrator will mail Notice Letters and Claim Forms in late September through early October 2012 to approximately 2 million borrowers who lost their home due to foreclosure between January 1, 2008 and December 31 2011 and whose loans were serviced by one of the five mortgage servicers that are parties to the settlement. The materials explain how to get your payment and eligibility guidelines.

If you have further questions after reading this material, you can contact the National Mortgage Settlement Administrator at 1-866-430-8358.

Immediate payments awards States to help fund consumer protection and state foreclosure protection efforts.

This is the 1st Nationwide reforms to servicing standards. No other Federal or State agency has been able to achieve this success.

Servicing standards should require single point of contact, adequate staffing levels and training, better communication with borrowers, and appropriate standards for executing documents in foreclosure cases, ending improper fees, and ending dual-track foreclosures for many loans that have lead to the foreclosure problems.


Happy 2013! Helping Families