I would like to share some important news regarding the recent settlement of a nationwide lawsuit against the country’s five largest mortgage servicers (Ally, Bank of America, Citi, JP Morgan Chase and Wells Fargo), thanks to the efforts and negotiation by the 50 state attorneys general including our own George Jepsen.
The lawsuit was a result of the banks’ abuses in the origination and servicing of loans, including “robo-signing” mortgage documents, losing documents, and being non-responsive to borrowers. This settlement yielded $25 billion nationally in relief to distressed borrowers, and Connecticut will see approximately $190 million of those funds, most of which will go directly to borrowers.
The settlement will continue to be implemented over the next three years.
If you or someone you know was a victim of any abuses by any of these banks, I encourage you to please refer to the contacts below for help and more information.
Following is a breakdown of these funds and information on how to contact each loan servicer:
$120 million in loan modification for at-risk Connecticut borrowers, including principal reduction and interest rate reduction.
$36 million in immediate relief to borrowers who are current, but whose property is underwater.
A one-time payment of $1,500 to each of the 7,500 Connecticut homeowners who lost their house between January 1st, 2008 and December 31st, 2011.
$27 million, which will go into the General Fund and may be used for borrower protection and foreclosure prevention efforts.
Nationwide reforms to loan servicing standards. Will require a single point of contact, adequate staffing levels and training, better communication with borrowers, appropriate standards for executing documents in foreclosure cases, ending improper fees, and ending dual-track foreclosures where foreclosure proceedings continued at the same time a borrower and bank were negotiating different terms.
State Attorney General will have oversight of national banks. They will now be required to regularly report compliance with the settlement to an independent, outside monitor that reports to the AG. Servicers will pay heavy penalties for non-compliance.
Where to go for help:
Bank of America: 877-488-7814
Wells Fargo: 800-288-3212
More information can be found www.ct.gov/ag
I hope you find this information helpful. As always, please feel free to contact my office at 800-842-8267 or by email: email@example.com