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National Mortgage Settlement With Ally GMAC, Bank of America, Citi, JPMorgan Chase & Wells Fargo

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:

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.

If You Have Thoughts On The Ally GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo National Mortgage Settlement, Share Your National Mortgage Settlement Comments Below.

{ 10 comments… add one }
  • Deborah Woodard October 21, 2012, 8:38 am

    I can see why Oklahoma opted out. What is $840 for all the pain and suffering these mortgage companies caused. This has gone on for years now, not a few months. Is this any compensation at all? I call it a slap in the face to the homeowners. Who made out in this lawsuit? The lawyers.

  • Dean Parsons October 21, 2012, 11:05 am

    This is all due to dirty rotten politics! It was called the community reinvestment act where the banks were told by the federal government to give mortgages to borrowers even if they did not have a job. Any body in their right mind would have known this would not last long. I remember Billy Clinton in his state of the union address saying more people owned homes then ever before. And the all these worthless loans were packaged and sold to foreign countries and they were worthless. Henry Paulson bought puts against these worthless pieces of paper and made millions. He knew they would worthless.

  • Lacrista October 22, 2012, 9:21 am

    Oklahoma got a far better deal. Our average payout is $11,000.00. The least amount for someone to get is $5,000.00 up to a max of $20,000.00. Our Attorney General did a much better job of settling than the other 49 AGs.

    $840.00 for all the bs that those companies put the american people through is certainly a slap in the face. How about the over 150,000 military families that GMAC wrongly foreclosed on? Where is their compensation for losing their houses while defending this nation for absolutely no reason other than corporate greed.?

    Do you really think the big mortgage companies learned their lesson with this settlement? No, absolutely not! This was just a slap on the wrist and a 5 minute time out with their nose in the corner.

    A proper settlement would have been to pay back ALL the money these people lost when the mortgage companies screwed them out of their houses and anyone wrongly foreclosed upon should have received at least the price of their house times 2. When you think about how they were counseled by their mortgage companies to go behind in order to qualify for the “Obama” plan and then while they are trying to get the refinancing, they are also in foreclosure in direct violation of that same plan and then be told that $840.00 is a fair and adequate repayment. BS. Its just another way the government has decided what’s in the best interest of us without asking us what we think. This has almost become a communist country.

  • Carol Sing October 22, 2012, 10:54 pm

    I am relieved to see that action has been taken against the banks that put their mortgagees through living hell. As seniors, we have been struggling for 5 years to make our mortgage payments, due to losses in our small businesses once the recession hit. We lost 72% of our income. Bank of America would not approve a mortgage adjustment, after two years of trying. Reason? Our Wells Fargo investor said he would lose money if our interest rate was reduced! We were two weeks late in one mortgage payment and received a foreclosure notice, which was later withdrawn. Our papers were “misplaced” twice, and we had to send in a total of three applications, etc. etc. Even though we have managed to pay our mortgage, we will never be considered to be financially healthy enough to refinance.

  • phillip d steward November 1, 2012, 10:43 am

    morgages, citi morgage 2002 to 2010 forced short sale bought the house 3 1/2 times added interest wrong corected wrong again, wells fargo car loan, chapter 13 paid off reposed 3 times and final pay-off on 2003 sunfire in 2009 was 5500, after paying from 2003 to 2008 plus 13 pay off and finished, sallie mae have proof of 2 loans taken out by gov. in my name only went to school for 1 quarter paid back a total of 36000.00 on a 3313.00 loann with half sent back on withdraw. forged loan for 7518.00 somebody help

  • Amandeep November 7, 2012, 1:40 am

    These big companies are making mortgages a mess. Its like going through a pain years and years till death but now after seeing these people are relieved that some actions are taken against the banks which are making the mortgages living hell.

  • ANGELO DI LUZIO November 8, 2012, 1:17 pm

    I proved i was current, and had no problems with washingtom mutual, and then came chase. The refused to take payments through the mail or over the phone. Then when you call you are put through a maze of operaters with no extension numbers. So every time you call it is a new person the end of the line….. We need the federal government or the attorney general’s office from each state to step in. The banks got their tarp monies, and now the banks want peoples homes also.

  • Paul November 9, 2012, 11:20 pm

    Absoulutly correct Lacrista I have A wife and six kids ages 7 months to 18 years all living with me. let me tell you I got a settlemant of 840.00 and im disgusted with boa, the mass ag, the president ,and the whole damn goverment! Was told buy B.O.A that my mod will take three months 4 years later they gave me $3500.00 to get out of my home that i grew up in, owed 293.000 the value of the house went down to $149,000.00 adjustable rate.Found out they lied on my loan ap included overtime as base salery to bring up my yearly salery. BANKS WILL ALLWAYS WIN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  • Crckk05 December 15, 2012, 2:52 am

    Wow this is all very depressing! Something everyone is forgeting about here is once you lose your house in the forclosure your credit is trash. So 840.00 will not touch what the bank has done to me and my family ! The only way the banks can repay the people that they wrongly forclosed on is by paying them what their house was worth so we can buy a new house. We are all stuck not able to own again for 7 to 10 years and that will be with money down and good credit. How do you re establish the credit? Loseing a house on your credit is murder. As far as I know no one has got any money yet, so it may be more then 840.00 but wont be near enough to ever repay what they did to all of us!!!!!!

  • sandra April 22, 2013, 3:15 pm

    I don’t understand banks have so many houses they can not sell why they don’t call us and make a offer to buy a house like a special , program a least give us a oportunity, I am paying $ 3000.00 for my rent they can call our land lord, am paying on time why they don’t give any oportunity, I have de dowm payment for a house but I don’t have a good credit after the forclosure this is ridiculuos, I hope we can have any offer from the banks or somebody who can work w people who lost their house but we can pay our house I am working I make good money.

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