$1.5B national settlement stems from loan servicing abuses by firms including Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, Wells Fargo
AUGUSTA – June 4, 2013 – (RealEstateRama) — The practice of ‘robo-signing’ documents that led to widespread abuses by national mortgage servicing companies led to a landmark $1.5 billion settlement against five of America’s largest firms. About 1,379 Maine residents will begin receiving checks today that average approximately $1,480.
“The abuses by the national mortgage industry were extremely disturbing and they needed to be held accountable,” said Maine Attorney General Janet T. Mills. “In addition to the compensation to the people who were subjected to these bad practices, the settlement seeks to stop it from happening again by requiring tough new mortgaging servicing standards. People have the right to a fair and accurate review of their mortgage documents and this settlement will uphold that standard for all Mainers.”
Checks will begin to be sent today to Mainers who lost their homes to foreclosure between January 1, 2008 and December 31, 2011, had their mortgage serviced by one of the settlement’s five participating mortgage servicers, and submitted a valid claim form. The participating servicers include Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, Wells Fargo.
Nationally, the settlement administrator, Rust Consulting, will mail 962,278 valid claim payments from June 10 through June 17. 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.
This settlement is in addition to other actions the Maine Office of Attorney General has taken to protect consumers from poor mortgage servicing practices. In February, 2013, Attorney General Mills announced a $500,000 settlement with one company that engaged in ‘robo-signing’ and improper notarizing of documents on behalf of other companies.
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. Consumers with questions can also go to: www.NationalMortgageSettlement.com