AG Gansler Announces More than 10,000 Maryland Borrowers to Receive $1,480 Checks Through
National Mortgage Settlement
No-strings-attached payments adds to $1.3 billion in relief so far
Baltimore, MD ( June 5, 2013) - Attorney General Douglas F. Gansler announced today that more than 10,000 Maryland borrowers who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480. The settlement administrator, Rust Consulting, will mail the checks between June 10 and June 17.
"These payments add to the $1.3 billion in relief already received by Marylanders as a result of the National Mortgage Settlement," said Attorney General Gansler. "Although this payment won't fully compensate borrowers for the loss of their home due to mortgage servicing abuses, it does provide some relief and is much higher than the minimum $840 check amount initially announced."
Attorney General Gansler also noted that a recipient of this payment is not precluded from seeking additional relief through a separate lawsuit or other claims.
The 10,470 Marylanders who are to receive checks totaling more than $15 million are eligible borrowers who had their mortgage serviced by one of the settlement's five participating mortgage servicers (Bank of America, Citi, JPMorgan Chase, Wells Fargo and Ally/GMAC), lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim form.
The most recent data from the Court-appointed Monitor of the National Mortgage Settlement shows that 16,627 Maryland families have received more than $1.3 billion in relief from the National Mortgage Settlement during the period of March 1, 2012 through March 31, 2013. Another $60 million in ongoing trial modifications for 500 distressed homeowners may further boost total assistance. More than $50 billion in direct relief has been provided to borrowers nationwide, including $1.5 billion set aside for payments to eligible borrowers whose homes have been foreclosed.
A small number of borrowers will receive a check at a later time or will receive a split payment. That includes borrowers who are divorced or separated and no longer live at the same address, as well as those who submitted a claim form but do not have a valid Social Security number on file, whose payments will be delayed while tax-related issues are addressed. Also, two servicers recently provided information on an additional 31,000 borrowers, resulting in a later payment date. Every borrower who filed a claim will receive a letter regarding their outcome. Borrowers with questions about their National Mortgage Settlement payment should call the settlement administrator Rust Consulting at 1-866-430-8358.
The National Mortgage Settlement was the result of allegations that the nation's five largest mortgage servicers engaged in illegal "robo-signing" of documents and a variety of other mortgage lending abuses.
For additional information on the National Mortgage Settlement's impact on Maryland, visit http://www.oag.state.md.us/mortgageSettlement/index.html
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