For Immediate Release
Media Contact: Bob Cooper
Date: September 25, 2012
12,000 Foreclosed Idahoans to Receive Payment Applications from National Mortgage Settlement
(Boise) - 12,207 Idaho borrowers who lost their homes to foreclosure between 2008 and 2011 are eligible for payments under the National Mortgage Settlement, Attorney General Lawrence Wasden said today. In February, Wasden joined in a $25 billion nationwide settlement with five national banks. At that time, it was estimated that 5,000 Idaho borrowers would be eligible for payments.
The banks—Ally/GMAC, Citi, JPMorgan Chase, and Wells Fargo—are the largest servicers of mortgage loans in the nation. One provision of the settlement requires the five servicers to compensate their customers for loan servicing errors that may have resulted in the customers losing their homes to foreclosure.
Last week, the national settlement administrator, Rust Consulting, mailed postcards to more than two million borrowers nationwide informing them that an information packet will be arriving soon. The Idaho packet will include a letter from Attorney General Wasden, a claim form, and instructions about how to apply for payment from the administrator. Packets were mailed to 2,687 Idaho borrowers yesterday (Monday). The rest of the eligible Idaho borrowers will receive their packets over the next few weeks.
In order to receive a payment, borrowers must return their claim form to the administrator (or apply online) before January 18, 2013. Checks will be mailed to the borrowers after the deadline.
"This payment is not intended to compensate Idahoans for the loss of their homes," Attorney General Wasden said. "Rather, it is a step toward accountability for unfair business practices that harmed Idaho homeowners. I remain committed to improving the mortgage servicing industry for the benefit of Idaho's current and future homeowners."
The minimum amount borrowers will receive is $840. The actual amount will be determined based on the number of borrowers who return their claim forms.
Borrowers who believe they may qualify for a payment under the Settlement, but who do not receive a claims packet, should contact the settlement administrator at 866-430-8358.
For more information about applying for payment or information about the National Mortgage Settlement, borrowers may visit the Attorney General's website and click on the "Mortgage and Foreclosure" button.
Wasden warns all homeowners to be aware of settlement-related scams. Do not provide personal information or pay money to anyone who calls or e-mails you claiming they can provide settlement-related assistance. Consumers should report suspicious settlement-related activities to the Attorney General's Consumer Protection Division at 208-334-2424 or toll-free in Idaho at 800-432-3545. Complaint forms are available here.
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