For Immediate Release
June 4, 2013
More than 7,000 Utah borrowers who made a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480. A total of $10,496,333 will be distributed to 7,379 Utahns from the $1.5 billion settlement.
Eligible borrowers had their mortgage serviced by one of the settlement’s five participating mortgage servicers, lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim form involving Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase or Wells Fargo.
“These payments hold the banks accountable and the settlement puts a stop to some of the mortgage servicing abuse we’ve seen in the past,” says Attorney General John Swallow.
Nationally, the settlement administrator, Rust Consulting, will mail 962,278 valid claim payments from June 10 through June 17. The total is much higher than the $840 minimum amount announced at the time of the settlement.
In February 2012, 49 state attorneys general and the federal government announced the historic joint state-federal National Mortgage Settlement with the country’s five largest mortgage servicers. Preliminary data shows the banks have provided more than $50 billion in direct settlement relief to borrowers nationwide.
The settlement does not prevent a borrower from seeking additional relief through a separate lawsuit or other claims. A relatively small number of borrowers will not receive a check in the initial mailing or will receive a split payment.
Some borrowers will receive a check for less than the approximate $1,480 payment in situations where borrowers are divorced or separated and no longer live at the same address. The full per-loan amount will be paid on these loans, but the payment will be evenly split between the borrowers.
A small number of borrowers who submitted a claim form but do not have a valid Social Security number on file will be delayed in receiving their payments while tax-related issues are addressed.
Two servicers recently provided information on an additional 31,000 borrowers, and thus they could not be included in this distribution. Later this summer, these consumers will receive a notice and will have the opportunity to submit a payment application.
Every borrower who filed a claim will receive a letter regarding their outcome. Borrowers with questions about their National Mortgage Settlement payment should call 1-866-430-8358. More information about the settlement can be found at www.NationalMortgageSettlement.com. Additional info about the OCC Independent Foreclosure Review is at www.OCC.gov.