WHO MAY BE ELIGIBLE FOR ASSISTANCE
settlement will provide as much as $25 billion in:
Relief to distressed borrowers in the states who signed on to the settlement;
Direct payments to signing states and the federal government.
Itís the largest consumer financial protection settlement in US history.
agreement settles state and federal investigations finding that the countryís five largest loan servicers routinely signed foreclosure
related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct.
Both of these practices violate the law.
The settlement provides benefits to borrowers in the signing states whose loans are
owned by the settling banks as well as to many of the borrowers whose loans they service. Borrowers from Oklahoma will not be eligible
for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.
Because of the complexity of
the mortgage market and this agreement, which will be performed over a three-year period, borrowers will not immediately know if they
are eligible for relief. Borrowers from states who did not sign the settlement will not be eligible for any of the relief directly
to homeowners. Borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected
not to join the settlement.
The settlement provides assistance for:
Homeowners needing loan modifications now, including
first and second lien principal reduction. The servicers are required to work off up to $17 billion in principal reduction and
other forms of loan modification relief nationwide.
State attorneys general anticipate the settlementís requirement for principal reduction
will show other lenders that principal reduction is one effective tool in combating foreclosure and that it will not lead to widespread
defaults by borrowers who really can afford to pay.
Borrowers who are current, but underwater. Borrowers will be able to
refinance at todayís historically low interest rates. Servicers will have to provide up to $3 billion in refinancing relief
Borrowers who lost their homes to foreclosure with no requirement to prove financial harm and without having to release
private claims against the servicers or the right to participate in the OCC review process. $1.5 billion will be distributed
nationwide to some 750,000 borrowers.
Over the next 30 to 60 days, settlement negotiators will be selecting an administrator
to handle the logistics of the settlement and monitor compliance. Over the next six to nine months, the settlement administrator,
attorneys general and the mortgage servicers will work to identify homeowners eligible for the immediate cash payments, principal
reductions and refinancing. Those eligible will receive letters.
This settlement will be executed over the next three years.
YOU CAN GO FOR HELP:
For loan modifications and refinance options, borrowers may be contacted directly by one of the five participating
mortgage servicers. Keeping in mind the timeline above, you may contact the banks directly if you need additional information:
Loans owned by Fannie Mae or Freddie Mac are
not impacted by this settlement. You may visit the following websites to learn if your loan is owned by either Fannie Mae or
These sites will also include links to information
about mortgage and foreclosure programs you may be eligible to access. You may also call 1-888-995-HOPE (4673)
who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011, a settlement administrator designated by the attorneys
general will send claim forms to persons eligible for cash restitution.
If you believe you are eligible for relief under this
settlement but are concerned you will be difficult to locate, please contact your Attorney Generalís Office. We will collect and forward
your information to the appropriate person to ensure you are contacted if you are eligible.
To Contact the Attorny General in
Your State: CONTACT AG