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Attorney General Jon Bruning today announced Nebraska is included in a joint federal-state agreement with the nation’s five largest mortgage servicers that addresses foreclosure abuses and fraud, and unacceptable nationwide mortgage servicing practices.
“This settlement provides protections for consumers dealing with the difficult issue of mortgage foreclosure,” said Bruning. “It also provides clear guidelines for how these mortgage servicers should operate going forward.”
Attorneys General Component
The settlement puts in place the first-ever nationwide reforms to mortgage servicing standards for the five largest servicers. The standards require these servicers to offer a single point of contact, adequate staffing levels and training, better communication with borrowers and appropriate standards for executing documents in foreclosure cases. In addition, these mortgage servicers have agreed to end improper fees and dual-track foreclosures for many loans.
The five banks will now be required to regularly report compliance with the settlement to an independent, outside monitor that reports to state Attorneys General.
Servicers will be required to pay penalties for non-compliance with the settlement, including missed deadlines.
Federal Component
The federal portion of the settlement requires the five banks to allocate a total of $17 billion[1] in assistance to borrowers in danger of foreclosure who have the intent and ability to stay in their homes. With these funds, the five banks will provide multiple forms of assistance including refinancing assistance, loan modification, facilitation of short sales, unemployed payment forbearance, relocation assistance, waiving of deficiency balances and funding for remediation of blighted properties.
The remaining settlement funds, approximately $2.5 billion, will be paid to the participating states. Nebraska’s share will be approximately $8.8 million to be deposited into the State Cash Reserve Fund. In addition, each state banking regulator (Nebraska Department of Banking and Finance) will receive $1 million for foreclosure prevention and education.
For Borrowers
Because of the complexity of the mortgage market and this agreement, which will be executed over a three-year period, borrowers will not immediately know if they are eligible for relief.
For loan modifications and refinance options, borrowers may be contacted directly by one of the five participating mortgage servicers. Banks will be conducting a vigorous search to identify eligible borrowers and this may take six to nine months.
Borrowers who think they may qualify for loan modifications may wish to contact banks directly:
- · Bank of America: 877-488-7814
- · Citi: 866-272-4749
- · Chase: 866-372-6901
- · GMAC: 800-766-4622
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· Wells Fargo: 1-800-288-3212
For the details, latest information and/or updates on the settlement, visit: www.NationalMortgageSettlement.com.
Attorney General Jon Bruning today announced Nebraska is included in a joint federal-state agreement with the nation’s five largest mortgage servicers that addresses foreclosure abuses and fraud, and unacceptable nationwide mortgage servicing practices.
“This settlement provides protections for consumers dealing with the difficult issue of mortgage foreclosure,” said Bruning. “It also provides clear guidelines for how these mortgage servicers should operate going forward.”
Attorneys General Component
The settlement puts in place the first-ever nationwide reforms to mortgage servicing standards for the five largest servicers. The standards require these servicers to offer a single point of contact, adequate staffing levels and training, better communication with borrowers and appropriate standards for executing documents in foreclosure cases. In addition, these mortgage servicers have agreed to end improper fees and dual-track foreclosures for many loans.
The five banks will now be required to regularly report compliance with the settlement to an independent, outside monitor that reports to state Attorneys General.
Servicers will be required to pay penalties for non-compliance with the settlement, including missed deadlines.
Federal Component
The federal portion of the settlement requires the five banks to allocate a total of $17 billion[1] in assistance to borrowers in danger of foreclosure who have the intent and ability to stay in their homes. With these funds, the five banks will provide multiple forms of assistance including refinancing assistance, loan modification, facilitation of short sales, unemployed payment forbearance, relocation assistance, waiving of deficiency balances and funding for remediation of blighted properties.
The remaining settlement funds, approximately $2.5 billion, will be paid to the participating states. Nebraska’s share will be approximately $8.8 million to be deposited into the State Cash Reserve Fund. In addition, each state banking regulator (Nebraska Department of Banking and Finance) will receive $1 million for foreclosure prevention and education.
For Borrowers
Because of the complexity of the mortgage market and this agreement, which will be executed over a three-year period, borrowers will not immediately know if they are eligible for relief.
For loan modifications and refinance options, borrowers may be contacted directly by one of the five participating mortgage servicers. Banks will be conducting a vigorous search to identify eligible borrowers and this may take six to nine months.
Borrowers who think they may qualify for loan modifications may wish to contact banks directly:
- · Bank of America: 877-488-7814
- · Citi: 866-272-4749
- · Chase: 866-372-6901
- · GMAC: 800-766-4622
-
· Wells Fargo: 1-800-288-3212
For the details, latest information and/or updates on the settlement, visit: www.NationalMortgageSettlement.com.
