According to releases from various state attorneys general offices, Rust Consulting, the settlement administrator, will mail the payments associated with 962,278 loans. Rust Consulting also serves as the paying agent for the Independent Foreclosure Review settlement.
According to the mortgage settlement website, about $1.5 billion from the $25 billion settlement will be used to compensate borrowers who lost their home to foreclosure between 2008 and 2011 and had a mortgage that was serviced by one of the five banks in the settlement-Ally, Bank of America, Citi, JPMorgan Chase and Wells Fargo, the
In order to be considered for payment relief, borrowers had to submit a valid foreclosure claim. The period to submit a claim has ended.
“Although these payments will by no means fully compensate a homeowner for the loss of their home, they will help to provide some relief to Nevada homeowners for the mortgage servicing abuse they likely endured. It is important to remember these payments do not have to be the end. Borrowers may still seek relief through a separate lawsuit or other claims,” said Masto.
The Nevada attorney general’s office also stated that some borrowers in situations where there was a divorce/separation or they no longer live at the same address will receive a lesser amount than the $1,480.
Every borrower who filed a claim should also receive a letter regarding the outcome of their submission. Payment questions can be directed to Rust Consulting at 866-430-8358, but currently, the settlement administrator is not able to provide specific mail dates for individual borrowers.
Some attorneys general also revealed two servicers provided information on another 31,000 borrowers who will have an opportunity to submit a payment application and become part of the distribution.
The landmark national mortgage settlement was reached in February 2012 with federal officials, 49 state attorneys general, and five servicers.
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