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State borrowers receiving $1,480 checks through settlement
OLYMPIA — Borrowers who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480, much higher than the amount of $840 first announced.
Eligible borrowers had their mortgage serviced by one of the settlement’s five participating mortgage servicers, lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011, and submitted a valid claim form. The participating servicers include Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo.
These checks come from a $1.5 billion payment pool negotiated by Attorney Generals across the United States and set aside as part of the National Mortgage Settlement. Payment does not limit a borrower from seeking relief through a separate lawsuit or other claims.
“Homeowners deserve this financial relief,” said Washington State Attorney General Bob Ferguson. “Washington continues to lead in this effort, and I’m proud work with my counterparts has resulted in higher compensation than what we first announced. This will help people start to get back on their feet.”
“These payments are part of our efforts to hold the banks accountable through the National Mortgage Settlement,” Ferguson said. “We’re working to halt these practices through the settlement’s tough new mortgage servicing standards.”
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 that, so far, the servicers have provided more than $50 billion in direct settlement relief to borrowers nationwide.
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.
Nationally, the settlement administrator Rust Consulting, will mail 962,278 valid claim payments from June 10-17.
Every borrower who filed a claim will receive a letter regarding their outcome. Borrowers with questions about their National Mortgage Settlement payment should call Rust Consulting at 1-866-430-8358.