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Bank
of America Settlement
Certain Countrywide borrowers are receiving letters
and claims forms informing them of the potential to receive payments
from the settlement between Countrywide Financial Corporation and
the Consumer Protection Division of the Office of the Attorney
General for the State of Maryland. If you receive a letter and
claim form, you should read them carefully and we encourage you
to consult with an attorney prior to making a decision. This site
includes a copy
of the Consent Order and provides answers to some
frequently asked questions about the relief program for certain
Countrywide borrowers who have experienced foreclosure.
Frequently Asked Questions About Foreclosure Relief Program
If you have questions about the Settlements that are not answered
on this web site, please contact the Settlement Administrator,
Rust Consulting at 1-866-411-6987.
What Do These Settlements Mean?
1. What does Countrywide have to do under the Settlements?
Countrywide
entered into Settlements with the Attorneys General of multiple
states and the State of Hawaii Office of Consumer Protection.
Under these Settlements, Countrywide will offer payments to
borrowers
who meet certain eligibility criteria (See Questions
3 and 8), including that your home was foreclosed
upon.
The Settlements require Countrywide to offer other forms of assistance,
including loan modifications, to certain borrowers as well.
A
copy of the settlement is posted here.
2. What if I have a Countrywide Loan that I Cannot Afford?
If you currently have a Countrywide loan and are having difficulty
making your payments, the Settlements created a loan modification
program that may help. If you would like more information on
the loan modification program, please contact Bank of America
at 1-800-669-6607. Please do not contact the Settlement Administrator
with questions about loan modifications.
Who Is Eligible to Receive a Settlement Payment?
3. What are the general criteria to determine
whether someone is eligible to receive a Settlement payment?
Borrowers
must meet certain minimum criteria to be eligible to receive a Settlement
payment:
- The
loan was made by Countrywide, (See Question 4)
- The
loan was secured by an owner-occupied property; in other
words, the
borrowers must have lived in the property that served
as collateral for the loan, (See Question 6).
- The
first payment on the loan was due between January 1,
2004 and December 31,
2007 (See Question 7).
- You
must have lost the property securing the loan through foreclosure,
deed in
lieu of foreclosure, or a short sale.
4. Am
I eligible to receive a payment if my loan was transferred
to Countrywide for servicing?
No. Only borrowers whose
loans were made by Countrywide are eligible to receive a payment.
You are not eligible to receive a Settlement
payment if you obtained a mortgage loan from another lender, and
the loan was later transferred to Countrywide for servicing.
5. Am
I eligible to receive a payment if I owned the property as
an investment?
No. To be eligible to receive a Settlement
payment, you must have lived in the property.
6. Am
I eligible to receive a payment if my first loan payment was
due before January 1, 2004 or after December 31, 2007?
No.
To be eligible to receive a Settlement payment, the first payment
on the loan must have been due between January 1, 2004 and December
31, 2007. No other loans are eligible.
7.
How do I know if I am eligible?
You will be notified
by mail if you are eligible to receive a Settlement payment.
Your notice package will contain:
- A
letter explaining the Settlements;
- A
Claim Form and Release; and
- A
pre-addressed, postage-paid envelope to return the Claim Form
and Release to the Settlement Administrator.
8. I
think I am eligible but I’m not sure
Countrywide has my current address. What should I do?
Please
call the Settlement Administrator, Rust Consulting at 1-866-411-6987.
The Administrator will verify your identity. The Administrator
will update your address in the system and send you a notice
package by mail (See Question 7).
9.
If I am eligible, when will I receive a notice package?
We
expect to that the Settlement Administrator will begin mailing
packages to eligible borrowers by July 24, 2009. It is anticipated
that you will receive your notice package by early August.
How Much Will I Receive if I am Eligible?
10. How much will eligible borrowers receive?
Eligible
borrowers will receive a letter stating the minimum payment,
(See Question 11), they will receive
if they sign
and return the Claim Form and Release by the “postmark
by” date.
Borrowers who sign and return their Claim Form will receive
at least the minimum payment specified in their letter.
11.
Why does the letter only state the minimum amount of the payment?
Some
Maryland borrowers may choose not to sign and return the release.
As a result, there might be additional money available for distribution
to borrowers who chose to sign and return the release. However,
you should decide whether to participate in the Settlements based
on the assumption that you will receive only the minimum payment.
12.
Do I have to pay taxes on my payment?
You may receive
an IRS Form 1099-MISC with your payment check, but we cannot
tell you whether or not your payment is taxable.
Whether the payment is actually taxable will depend on several
factors. The Settlement Administrator, the states, and Countrywide
and its affiliates cannot give you tax or other legal advice
on this matter. If you do have tax questions, you should contact
a tax preparer or advisor.
13.
When will I receive my payment?
Payments will be made
after the deadline has passed for all eligible borrowers to
return their Claim Forms and Releases. We hope to
begin mailing payments early in 2010 to borrowers who timely
return a signed Claim Form and Release.
How Do I Participate in the Settlements and What Does Participation
Mean?
14. What do I need to do to receive my payment?
If
you are an eligible borrower, you must:
- Complete
and sign the Claim Form and Release; and
- Return
the signed Claim Form and Release to the Settlement Administrator
by the
date indicated.
What Does Signing the Claim Form and Release Mean?
15. What am I agreeing to by signing the Claim Form and Release?
Please
read the Claim Form and Release very carefully. By signing and returning
the Claim Form and Release, you agree to give up
some legal rights and choices you might otherwise have. You need
to read the release carefully and make sure that you understand
all of the claims that you are releasing. We encourage you to
talk to a lawyer before signing the release.
The
Claim Form and Release applies to any of the above claims you
might have against Countrywide and any of its affiliates, including:
- Countrywide
Home Loans, Inc.;
- Full
Spectrum Lending, Inc.;
- Countrywide
Home Loans Servicing, L.P.; and
- Bank
of America Corporation.
Your decision to participate is final. You will not be able to
change your mind, even if you later decide that you could get more
money from your own lawsuit or by participating in a class action.
16.
Can I still sue Countrywide if I send in my Claim Form and
Release?
No.
Sending in a signed Claim Form and Release means you agree
not to sue Countrywide or its affiliates (See Questions
17 and 18) concerning any of the claims
described in the Release. Please see Question 15, above for
more information regarding the Release.
17.
What does it mean to give up my right to be part of a class
action lawsuit against Countrywide?
If you sign the Claim
Form and Release, you also give up the right to be part of a class
action lawsuit against Countrywide concerning
the claims described in the release.
In
a class action lawsuit, one or more people sue on behalf of other
people
who have similar claims. The people together are a “class” or “class
members.” The Court must first rule if it will allow the
lawsuit to proceed as a class action. If it does, the class is “certified,” and
the court then decides the lawsuit for everyone in the class. When
a class is certified, whatever is decided applies to everyone in
the class. The lawsuit is sometimes called a “purported” or “potential” class
action until the Court decides that the lawsuit can go forward
as a class action. In a class action, class members generally don’t
have to pay the lawyers.
18.
If I have sent in my Claim Form and Release, can I change my
mind?
No.
When you sign and return your Claim Form and Release, your decision
to receive a Settlement payment
is final. If you choose
not to sign the Claim Form and Release, or don’t send it
in by the deadline time, your decision not to participate is
also final.
We encourage you to read the Claim Form and Release very carefully
before making a decision. We also encourage you to consult with
an attorney before making a decision.
19.
What if I’ve filed or am thinking about filing for bankruptcy?
You
should ask your bankruptcy attorney or the bankruptcy trustee
what receiving a Settlement payment means for your bankruptcy
filing.
How Do I Complete My Claim Form and Release?
20. What if the eligible borrower has passed away?
For
the estate to participate in the Settlements, the personal
representative of the eligible borrower’s estate (or
someone else with the authority to sign on behalf of the
estate of the
borrower) will need to sign and return the Claim Form and Release
by the date indicated.
In
addition to the signed Claim Form and Release, these additional
materials should be returned:
- Proof
that the person who signed the form has the necessary authority
to sign on behalf of the borrower’s
estate.
- A
copy of the borrower’s death certificate.
21.
If I have a co-borrower on my loan, do we both need to sign
the Claim Form and Release?
Yes. Each person who signed
the original loan documents will need to sign the Claim Form and
Release. The payment check will be made
payable to all co-borrowers.
22.
What if I cannot get my co-borrower’s signature because
we are now divorced or separated?
All
co-borrowers must sign the release in order for the borrowers
to receive a Settlement
payment (See Question 23).
Without your co-borrower’s signature (or the signature
of a representative authorized to sign for him or her), you
cannot receive the Settlement payment.
23.
What if I cannot get my co-borrower’s signature because
my co-borrower has passed away?
The
executor of your co-borrower’s
estate (or someone else with the appropriate authority to sign
on behalf of the estate
of your co-borrower) will need to sign the Claim Form and Release.
In
addition to the signed Claim Form and Release, these additional
materials should be returned:
- Proof
that the person who signed the form has the necessary authority
to sign on behalf of your co-borrower’s
estate.
- A
copy of your co-borrower’s death certificate.
24.
Will my information be kept confidential?
Yes. The
Settlement Administrator has the responsibility to protect
the privacy of all information you provide.
25.
How long will I have to cash my check?
You have 90
days from date of issue to cash your check.
26.
What if my bank needs to verify the check?
Your bank
or check cashing service should call the Settlement Administrator
at 1-866-411-6987 between the hours of 8:00 a.m. and 7:00 p.m.,
Central Time, Monday through Friday, to verify the name and address
on the check. You may need to verify your identity when presenting
the check to your bank.
27.
My check has expired. Can I get a new check?
To request
that the Settlement Administrator reissue the check:
- Please
write VOID on the check and mail it back to the Administrator.
- Once
the Administrator receives your returned check, it will reissue
it with a new expiration date.
- Please
allow up to six weeks for reissue.
The last day to request that a check be reissued is 150 days from
the date of issue of the original check.
28.
I lost or accidentally destroyed my check. Can I get a new
check?
If you have lost or destroyed your check, please:
- Write
the Settlement Administrator a letter containing your Countrywide
mortgage loan
number and request that a new check be issued;
- Have
the letter signed by all co-borrowers;
- Mail
the letter to the Settlement Administrator, P.O. Box 1855,
Faribault, MN 55021-7110.
In response to that letter, the Administrator will stop payment
on the check that has been issued and send you a new check. Please
allow up to six weeks for reissue.
The last day to request that a check be reissued is 150 days from
the date of issue of the original check.
29.
The check was made payable to the estate of the borrower. The
estate is closed and cannot cash the check, what do I need
to do?
If your bank will not cash your check, you need
to return the check to the Settlement Administrator.
- Please
write VOID on the check and return it to the Administrator;
- Please
include a letter explaining why the check needs to be reissued;
- Please
also include a copy of the borrower’s death certificate
and other documents that show your authority to receive
the payment.
The
Administrator will review your documentation and make a decision
as to whether the check will be reissued or if any additional
information is needed. (See Question 20).
The last day to request that a check be reissued is 150 days from
the date of issue of the original check.
30.
What if I receive a rejection letter?
If
you receive a letter rejecting your Claim Form and Release,
it will be
because you submitted a Claim Form and Release that
was not correctly filled out or was received after the
deadline. Your letter will indicate the reason(s) your Claim
Form and Release
was rejected. If you have any additional questions after
receiving such a letter, please call the Settlement Administrator,
Rust
Consulting at 1-866-411-6987.
31.
Will the Claim Form and Release or the Settlement Administrator
ask for any confidential information?
The
Release Form will ask you for your updated address (if any).
The Claim Form
and Release won’t ask you to provide any other
personal information. However, in the event you can’t obtain
a borrower’s signature, because of circumstances such as
the death of the borrower, or if you are the guardian of the
borrower, you will need to provide additional information to
the Settlement
Administrator. All information you provide will be kept confidential
by the Settlement Administrator, and will only be used to validate
your Claim Form and Release.
After you return your Claim Form and Release, it is possible that
the Settlement Administrator may need to contact you to verify
some information, especially if your circumstances have changed
since the time you obtained the loan (for example, if you moved).
To make sure you provide information only to the proper Settlement
Administrator:
- Send
information by mail to the Settlement Administrator, P.O. Box
1855, Faribault, MN 55021-7110.
- Call
the Settlement Administrator at 1-866-411-6987.
The
Settlement Administrator will never use a different phone number
or address.
The Settlement Administrator will never ask
you to send any money to any address in order to participate in
or receive any information about the Settlements. If anyone other
than the Settlement Administrator requests your confidential information
or if anyone asks for money in order for you to participate in
the Settlements, do not provide that information. Instead, you
should immediately report them to the Attorney General’s
office.
I Have More Questions.
32. I still have some questions. Who can I contact?
If
you have additional questions about the Settlements, you can
contact the Settlement Administrator at 1-866-411-6987.
Here
is a link to the Consent Order.
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