National Mortgage Settlement
- Learn more about this brutal case between home loan borrowers vs the lenders who made the loans
- Info on loan modifications and refinance options
- Register a complaint about mortgage servicers online
The housing crises of 2009 decimated the economy. Quite a few borrowers who couldn’t make their mortgage payments were foreclosed on, and many are still struggling to make payments today. But there is relief. In 2009, the attorneys general of 49 states (sans Oklahoma) announced a bi-partisan settlement with The United States’ five largest mortgage servicers: Bank of America, Citi, Ally/GMAC, JPMorgan Chase, and Wells Fargo. The result of this settlement is that it provided $50 billion in aid to state governments as well as relief to distressed borrowers in these states. Now folks can visit nationalmortgagesettlement.com in order to find out the finer points of the settlement and see if they qualify for aid.
Key settlement provisions
- Provides up to $17 billion in aid to homeowners in need of loan modifications nationwide
- Immediate aid to borrows whose mortgages are worth more than the value of their home
- Payouts to mortgage borrowers who lost their residence due to foreclosure
- Payments to consumer protection agencies signatory states to help prevent future foreclosures
- Nationwide lending reforms
Many folks think this settlement means that mortgage services are no longer liable for other claims. Nothing could be further from the truth. The settlement does not offer banks immunity from wrongdoing. They are still susceptible to private claims made by individuals regarding residential mortgage foreclosures, as well as class action claims. Neither does this settlement stop investigations into Wall Street regarding the financial crises, or the mortgage-backed securities that were the cause of said crisis. Any distressed borrower can still pursue individual against loan servicers. The aforementioned website also offers help for borrowers not eligible for assistance in the form of HUD-approved counseling.
Contacting the national mortgage settlement administrator