Attorney General Peter F. Kilmartin today announced that approximately 2,737 Rhode Island homeowners who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480.
Eligible borrowers had their mortgage serviced by one of the settlement's five participating mortgage servicers, lost their home to foreclosure between January 1, 2008 and December 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 we negotiated and set aside as part of the National Mortgage Settlement," said Attorney General Kilmartin. "These funds will not and cannot reverse foreclosures, and they cannot return people to the homes lost to foreclosure. It is, however, restitution for past servicing abuses that may have taken place by mortgage service providers." Kilmartin added that the payment does not limit a borrower from seeking relief through a separate lawsuit or other claims.
Nationally, the settlement administrator will mail 962,278 valid claim payments from June 10 through June 17. The final amount of $1,480 is much higher than the minimum amount first announced, which was approximately $840.
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.
o Some borrowers will receive a check for less than the approximate $1,480 payment in situations where the 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.
o 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.
o 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. Every borrower who filed a claim will receive a letter regarding their outcome. Borrowers with questions about their National Mortgage Settlement payment should call the settlement administrator at 1-866-430-8358.
For more information, please visit www.riag.ri.gov or www.nationalmortgagesettlement.com.
Please Note: National Mortgage Settlement and Independent Foreclosure Review Payments are Separate
The Independent Foreclosure Review (IFR) settlement is unrelated and separate from the National Mortgage Settlement and does not include the same governmental agencies. The IFR payments began in mid-April of 2013, and the OCC announced that final payments will be mailed in mid-July. For more information on the OCC Independent Foreclosure Review settlement, go to www.OCC.gov and click on Independent Foreclosure Review.