Update: June 4, 2013
The date for the distribution of checks to borrowers who submitted valid claims has been set. Checks will begin mailing on June 10 and will be completed by June 17, 2013, and the payment amount for each loan is approximately $1,480. The exact amount is not being released to help prevent fraud. Please allow time for delivery of payments. The Settlement Administrator cannot provide specific mail dates for individual borrowers at this time.
Payments to borrowers who lost their homes to foreclosure
Update: May 13, 2013
Approximately $1.5 billion of the funds recovered in the national settlement are being used to compensate borrowers who lost their home to foreclosure during the period of January 1, 2008, to December 31, 2011. The deadline to submit a claim form has now passed. If you have submitted a claim form, the Settlement Administrator Rust Consulting, will contact you if any additional information is needed to complete your claim.
Rust Consulting can be reached at 1-866-430-8358. Checks to borrowers who submitted claim forms are expected to be mailed mid-2013. The processing of the claim forms is underway and until it is completed, the exact dollar amount of the payments is not determined, however, it is anticipated it will exceed the minimum payment of $840 that was indicated on the claim form. Borrowers who submitted claims have been contacted if additional information is needed for the processing of the claims. The Settlement Administrator is not authorized to release specific information about the number of claims submitted at this time, pending the conclusion of the distribution process.
Please be aware that Rust Consulting is also the settlement Administrator for the Independent Foreclosure Review (IFR) Payment Agreement obtained by the Office of the Comptroller of the Currency and the Federal Reserve Board. The IFR settlement is completely separate from the National Mortgage Settlement and does not include the same governmental agencies. The IFR payments began in mid-April of 2013, and will continue in mailings until July 2013. You can find additional information on the OCC Independent Foreclosure Review settlement at this website: http://occ.gov/topics/consumer-protection/foreclosure-prevention/correct...
You may be eligible for payments under both settlements. Accepting a payment from either settlement will not affect any rights you may have to take legal action related to your foreclosure.
Homeowners should also be wary of scams. Unscrupulous companies are contacting homeowners with offers of assistance for a fee to receive the settlement payment. You should not pay a fee to receive a payment under either agreement.
Federal Government & Attorneys General reach landmark settlement with major banks
Roughly $25 billion in relief for distressed borrowers, states and federal government...
In February 2012, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest mortgage servicers:
The settlement provides as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998.
The agreement settles state and federal investigations finding that the country’s five largest mortgage servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct. Both of these practices violate the law. The settlement provides benefits to borrowers whose loans are owned by the settling banks as well as to many of the borrowers whose loans they service.
- About the Settlement: Learn about the settlement, who is affected and what claims may still be pursued against the banks. Find links to your state Attorney General’s Office to find state-specific information and contacts.
- Help for Borrowers: Learn how to find out if your loan is affected by this settlement, the timeline for relief, how you will know if you are eligible. Find links to your state Attorney General’s Office to find state-specific information and contacts.
- News: Read the national news release and find links to your state Attorney General’s Web site for state-specific news.