Ally GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo National Mortgage Settlement To Provide Billions of Dollars In Relief To Distressed Borrowers.
A landmark settlement has reportedly been reached with the country’s five largest mortgage servicers Ally GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo of a federal lawsuit pending in the U.S. District Court, District of Columbia (styled United States of America, et al. v. Bank of America Corp., et al., Case No. 12-cv-361-RMC) involving, among other things, allegations regarding the banks’ servicing of loans and handling of foreclosures, including robo-signings (i.e., the alleged signing of foreclosure documents outside the presence of a notary public and without really knowing whether the facts they contained were correct).
Under the Ally GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo National Mortgage Settlement, the banks will reportedly provide as much as $25 billion in relief to distressed borrowers to reduce the principal on many of their loans to allow homeowners to keep their homes and to allow the refinancing of loans to “underwater” borrowers who have been unable to refinance due to negative equity, as well as direct payments to the states and federal government and certain consumers. Borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.
Approximately $1.5 billion of the settlement funds will be allocated to compensation to borrowers who were foreclosed on after January 1, 2008 and before Dec. 31, 2011. For borrowers who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and whose loans were serviced by one of the five participating mortgage servicers, the National Mortgage Settlement Administrator mailed Notice Letters and Claim Forms in late September through early October. Those borrowers may be eligible to receive a payment of at least $840.00 as part of the National Mortgage Settlement, which is an estimated payment amount based on 100% of all eligible borrowers submitting claim forms. To file a claim online, visit the National Mortgage Settlement Claim Filing Site.
For loan modifications and refinance options, borrowers may be contacted about the settlement directly by one of the participating mortgage servicers:
- Ally/GMAC: 800-766-4622
- Bank of America: 877-488-7814
- Citi: 866-272-4749
- JPMorgan Chase: 866-372-6901
- Wells Fargo: 800-288-3212
For additional information on the Ally GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo National Mortgage Settlement visit the official settlement website at www.nationalmortgagesettlement.com or call the National Mortgage Settlement Administrator at 1-866-430-8358.
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