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Learn about the $25 billion national mortgage settlement

2/16/2012

MORTGAGE  RELIEF

National Mortgage Settlement News

The federal government and 49 states including Ohio, have reached a landmark agreement with five of the nation's largest mortgage servicers.  This $25 billion agreement will address foreclosure abuses and concerns about servicing mortgage loans.  Ohio's estimated share of the settlement is $335 million.  It offers substantial relief to thousands of homeowners who have faced foreclosure or are currently underwater or at risk of defaulting on their mortgages. Some homeowners may benefit from reduced principals and refinancing of their loans.  Announced on February 9, 2012, this unprecedented joint agreement also establishes significant new homeowner protections for the future and compensates states and consumers for billions of dollars of past abuses.

While many homeowners are expected to benefit, it is important to understand that the agreement is limited to certain factors and applies only if your mortgage was serviced by the five financial institutions that signed the agreement.  They are:

Institution                              

Federal And State Payments

Relief to Borrowers

Ally Financial, Inc. (formerly GMAC)

$110 million

$200 million

Bank of America Corp.

$3.24 billion

$8.58 billion

Citigroup, Inc.

$415 million

$1.79 billion

J.P. Morgan Chase & Co.

$1.08 billion

$4.21 billion

Wells Fargo & Co.

$1.01 billion

$4.34 billion

 

TIMELINE

Due to the complexity of the settlement, borrowers will not immediately know if they are eligible for relief. 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.  The settlement will be executed over three years.

WHERE TO GET MORE INFORMATION:

www.nationalmortgagesettlement.com  This website was established by the federal government. It includes detailed information about the mortgage settlement agreement such as important  updates on who may be eligible for help and when those who are eligible will be contacted.

Ohio Attorney General Mike DeWine
State Office Tower, 30 E. Broad St., Columbus, OH 43266-0410
phone: (614) 466-4320     http://www.ohioattorneygeneral.gov/

For further assistance with housing matters, my office is here to help. 

Please contact Stephen Caviness in the district office:  

4834 Richmond Road, Suite 150
Warrensville Heights, OH 44128

phone: 216-522-4900   email: stephen.caviness@mail.house.gov