You could get payment from the Washington Mutual Option Adjustable Rate Mortgage ARM Loan class action settlement if you have or had an Option Adjustable Rate Mortgage Loan that was obtained between January 16, 2004 and December 2, 2014, and, among other things, was secured by real property in California, was acquired by Washington Mutual Mortgage Securities Corp. or WaMu Asset Acceptance Corp., and serviced by Washington Mutual Bank.
Washington Mutual Mortgage Securities Corp., WaMu Asset Acceptance Corp., BrooksAmerica Mortgage Corporation and Residential Funding Company, LLC (collectively “Defendants”) have reportedly agreed to a proposed settlement of a mortgage class action lawsuit against defendants in the United States District Court for the Central District of California (styled as Peel v. BrooksAmerica Mortgage Corp., et al., Case Number 8:11-cv-00079-JLS (RNBx)) alleging, among other things, that defendants violated the federal Truth in Lending Act (“TILA”) and California’s Unfair Competition law (“UCL”) in connection with the sale of Option Adjustable Rate Mortgage Loans by allegedly failing to disclose that by making the minimum monthly loan payments at the beginning of the mortgage loan term the principal balance would increase, resulting in a negative amortization, according to the Washington Mutual class action settlement notice.
Who Is Included In The Washington Mutual Option Adjustable Rate Mortgage ARM Class Action Settlement?
The Washington Mutual settlement class reportedly includes, unless otherwise excluded, all persons who obtained an Option ARM Loan from January 16, 2004, through December 2, 2014:
(a) that was acquired by Washington Mutual Mortgage Securities Corp or WaMu Asset Acceptance Corp. (b) that was serviced at any time by Washington Mutual Bank (c) that was secured by real property in the State of California (d) that was not originated by a national bank or a federal savings association, an operating subsidiary of a national bank or a federal savings association; or an affiliate, division, subdivision, predecessor, or parent of Mutual Mortgage Securities Corp or WaMu Asset Acceptance Corp. (e) that had following characteristics: (i) the “Interest Rate” paragraph of the Note (Paragraph 2) states both a “yearly” Interest Rate that is less than the index plus the margin; and that the Interest Rate “may” rather than “will” change; (ii) the “Initial Monthly Payment” listed in the Note is based upon the yearly interest rate listed in paragraph 2; and (iii) the Note does not contain any statement that after the first Interest Rate Change Date, paying the amount listed as the “Initial Monthly Payment” “will” result in negative amortization or deferred interest.
What Settlement Benefits Does The Washington Mutual Class Action Settlement Provide?
The Washington Mutual class action settlement reportedly provides, among other things, for the creation of an $10 million settlement fund to pay class members, to pay settlement administration costs, to pay class counsel’s attorneys fees, and to pay incentive awards to the class representatives. Each class member could reportedly receive between $239 and $716.
Where Can You Obtain More Information About The Washington Mutual Class Action Settlement?
For more information about the Washington Mutual class action settlement call toll free 800-416-4904, or visit the settlement website at wmmscsettlement.com or email the Washington Mutual settlement administrator at email@example.com.