For Immediate Release
June 4, 2013
James T. Boffetti, Senior Assistant Attorney General
Chief, Consumer Protection and Antitrust Bureau
Attorney General Joseph A. Foster today announced that borrowers who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480.
Recipients are borrowers who had their mortgage serviced by one of the settlement's five participating mortgage servicers, lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim form. The participating servicers include Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, and Wells Fargo.
"These checks come from a $1.5 billion payment pool that was negotiated and set aside as part of the National Mortgage Settlement," Attorney General Foster said. "These payments help compensate borrowers for the mortgage servicing abuses that they may have endured. I am pleased that the final payment amount, $1,480, is much higher than the minimum amount we first announced, which was $840." Attorney General Foster added that the payment does not limit a borrower from seeking relief through a separate lawsuit or other claims.
The initial estimate for New Hampshire's share of these payments was $4.5 million. Actual payments will exceed that estimate by approximately $1.5 million.
Nationally, the settlement administrator, Rust Consulting, will mail 962,278 valid claim payments from June 10 through June 17.
"These payments are part of our efforts to hold the banks accountable through the National Mortgage Settlement," Attorney General Foster said. "In addition to compensating borrowers for the servicing abuse that happened in the past, we're trying to stop these practices through the settlement's tough new mortgage servicing standards."
In February 2012, 49 state attorneys general and the federal government announced the historic joint state-federal National Mortgage Settlement with the country's five largest mortgage servicers. Preliminary data shows that, so far, the servicers have provided more than $50 billion in direct settlement relief to borrowers nationwide in the form of principal reduction and other types of loan modifications.
A relatively small number of borrowers will not receive a check in the initial mailing or will receive a split payment.
Every borrower who filed a claim will receive a letter regarding their outcome. Borrowers with questions about their National Mortgage Settlement payment should call settlement administrator, Rust Consulting, at 1-866-430-8358.
National Mortgage Settlement, Independent Foreclosure Review Payments are Separate
Rust Consulting is also the settlement administrator for the Independent Foreclosure Review (IFR) payment agreement through the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board. The IFR settlement is unrelated and separate from the National Mortgage Settlement and does not include the same governmental agencies. The IFR payments began in mid-April of 2013, and the OCC announced that final payments will be mailed in mid-July. For more information on the OCC Independent Foreclosure Review settlement, go to www.OCC.gov and click on Independent Foreclosure Review.
Attorney General's Mortgage Hotline - 866-522-4450
New Hampshire Department of Justice | 33 Capitol Street | Concord, NH | 03301