Check back here to find out when the settlement administrator will be sending out claims forms for those whose homes have been foreclosed upon.
State Attorneys General Mortgage Servicing Settlement
On Thursday, February 9th, Attorney General Douglas F. Gansler entered into a settlement with the nation's five largest mortgage servicers, bringing nearly $1 billion in monetary benefits and relief to distressed Maryland homeowners. The accord follows an extensive investigation into foreclosure abuses, fraud, and unacceptable mortgage servicing practices such as "robo-signing."
The settlement will help thousands of Marylanders stay in their homes through enhanced loan modifications and other services. It also requires comprehensive reform of mortgage loan servicing standards, changing the way these banks will deal with customers in the future.
This landmark agreement - the largest of its kind in Maryland history - is between the Maryland Office of the Attorney General, the Department of Labor, Licensing, and Regulation's Office of the Commissioner of Financial Regulation, the Federal government, and the nation's five largest mortgage servicers, Wells Fargo, Bank of America, Citi, JP Morgan Chase, and Ally Bank/GMAC. 50 states entered into the agreement.
The settlement money will be used for:
Individual payments to borrowers who were victims of these banks' unfair servicing practices and were foreclosed upon between January 1, 2008 and December 31, 2011;
Loss mitigation programs, such as loan modifications (including principal reductions), forbearance plans, and short sales for homeowners with loans serviced by the five big banks who are behind on or very likely to soon fall behind on their mortgage payments due to financial circumstances;
Refinancing for homeowners with loans owned and serviced by the five big banks who are current in their payments but who owe more than their homes are worth; and
Housing counseling and other state-level foreclosure prevention and housing programs.
The settlement includes mechanisms to ensure the banks comply. A federal judge and an independent monitor will oversee the banks' compliance, and federal agencies, state attorneys general, and bank regulators can enforce compliance if there are violations the banks do not fix promptly. The settlement also builds in incentives designed to ensure prompt compliance, including a large monetary penalty if the banks do not meet targets for distributing the benefits required by the settlement on time.
The settlement does not release the banks from criminal liability. It does not prevent individuals from bringing their own claims. And it will not stop our office from pursuing the banks over misconduct in the securitization of mortgages, fair lending violations, or other fraud. People should expect to see further action.
Mortgage Servicing Agreement Contact Numbers
Maryland
Banks
Maryland Attorney General's Office Call Center:
410-576-6300 or 1-888-743-0023
Capital Area Foreclosure Network (CAFN)
(Statewide Referral to Spanish/Espanol Language Assistance.)
1-888-794-8830
(9:00 am to 5:00 pm, Monday - Friday)
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
For more information on the Mortgage Servicing Settlement:
