Attorney General Luther Strange announced last month that about 15,000 Alabama consumers will receive payments totaling $21,828,276 from a national settlement. This comes as a result of the state’s participation in the National Mortgage Settlement. The settlement administrator has approved 962,278 valid claims from June 10th through June 17th. Borrowers who are eligible to receive the payments had their mortgage serviced by one of the settlement’s five participating mortgage servicers. They all lost their homes to foreclosure between January 1, 2008, and December 31, 2011. In order to participate in the settlement, each person had to submit a valid claim form. The participating servicers include Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo. Attorney General Strange had this to say about the settlement: “I am pleased with these results of the National Mortgage Settlement, which continues to bring much needed relief to Alabama borrowers.”
In February 2012, the federal government and 49 state attorneys general announced the joint federal-state National Mortgage Settlement with the country’s five largest mortgage servicers. According to preliminary data, the servicers have provided more than $50 billion in direct settlement relief to borrowers nationwide. Hopefully, consumers in Alabama have already received other forms of mortgage relief as a result of this settlement. That should have included refinances, short sales and partial mortgage forgiveness. It’s been estimated that this feature of the settlement could amount to about $104,814,256. But of course that amount is very difficult to calculate. Additional relief has been promised, and is pending, with more expected for the future.
In Alabama, approximately $21,828,276 will be paid out and apply toward a total of 14,707 loans. Every borrower who filed a claim should have already received a letter regarding their outcome. Borrowers with questions about their National Mortgage Settlement payment should contact the settlement administrator at 1-866-430-8358. A relatively small number of borrowers will not receive a check in the initial mailing or will receive a split payment. Those are as follows:
• 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 servers recently provided information on an additional 31,000 borrowers. Those were not included in this distribution. Later this summer, these consumers should receive a notice and will have the opportunity to submit a payment application.
It’s good to see attorneys general from around the country working for people now instead of just for the giants in Corporate America.
Source: Attorney General’s Office
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