State Attorneys General Mortgage Servicing Settlement
General Information for the Borrower
- Over the next 30 to 60 days, settlement negotiators will be selecting an administrator to handle the logistics of the settlement and monitor compliance.
- Over the next six to nine months, the settlement administrator, attorneys general and the mortgage servicers will work to identify homeowners eligible for the cash payments, principal reductions and refinancing. Eligible borrowers will receive letters.
- This settlement will be executed over the next three years.
KEY PROVISIONS OF THE SETTLEMENT
- Aid to homeowners needing loan modifications now, including first and second lien principal reduction. The servicers are required to work off an estimated $808 million in principal reduction and other forms of loan modification relief for homeowners in Maryland.
- Aid to borrowers who are current in their payments but whose homes are worth less than the mortgage loan amount. Eligible borrowers will be able to refinance at today's historically low interest rates. Servicers will have to provide an estimated $64 million in financing relief for homeowners in Maryland.
- Payments to eligible borrowers who lost their homes to foreclosure without losing your right to sue the banks. An estimated $24 million will be distributed to thousands of borrowers in Maryland.
- First ever nationwide reforms to bank servicing standards. These servicing standards require:
- No more “robo-signing”
- Adequate staffing levels and training to assist borrower's needs
- Required written notifications from the bank (Open your mail.)
- Severe limits on banks to initiate foreclosure during the loan modification process
- Prohibiting unreasonable and excessive fees
WHO IS ELIGIBLE?
Eligibility for these benefits depends on many factors. We urge you to contact a trained nonprofit housing counselor as soon as possible. Call the Maryland HOPE Hotline at 1-877-462-7555. They can put you in touch with a nonprofit housing counselor in your area. (More information below.) If you make or made mortgage payments to one of these five banks you may be eligible for benefits provided by the settlement. The toll-free hotline numbers listed below have been set up by these banks to speak with borrowers about this settlement.
- Ally/GMAC: 1-800-766-4622
- Bank of America (And Countrywide): 1-877-488-7814
- Citi: 1-866-272-4749
- JPMorgan Chase (And WaMu): 1-866-372-6901
- Wells Fargo (And Wachovia) : 1-800-288-3212
Talk to an independent nonprofit housing counselor as soon as possible. An independent nonprofit housing counselor is someone who knows the complicated issues surrounding home mortgages and foreclosure and can help you deal with your bank. Maryland has been in the forefront nationally in helping homeowners connect with nonprofit housing counselors in your area through the Maryland HOPE Hotline. Maryland HOPE Hotline: 1-877-462-7555
Website: http://mdhope.org Be wary of “foreclosure scams”. Borrowers are urged to beware of people promising to assist them with guaranteed results of a loan modification FOR A FEE. It is likely a scam.
- Attorneys General oversight of national banks.
- National banks will be required to regularly report compliance with the settlement to an independent, outside monitor that reports to state Attorneys General.
- Servicers will have to pay heavy penalties for non-compliance, including missed deadlines.
WHERE DO WE GO FROM HERE?
- Banks are not off the hook.
- People still have the right to sue the banks.
- Banks are not immune from criminal prosecution.
- Governmental entities and private parties are aggressively pursuing securities cases against the banks.
- A joint federal-state task force has been formed to investigate and prosecute those responsible for the collapse of the mortgage lending and investment markets.
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