Foreclosure Abuse Settlement

Board of Governors of the Federal Reserve System released the findings of a review of ten mortgage loan servicing companies.

What this means for you as a consumer:

“The sum includes 3.3 billion in direct payments to eligible borrowers and 5.2 billion in other assistance, such as loan modifications and forgiveness of deficiency judgments.  The payments involve mortgage servicers operating under enforcement actions issued in April 2011 by the OCC, 3.8 million borrowers whose homes were in foreclosure in 2009 and 2010 with the participating servicers will receive cash compensation in a timely manner.

Eligible borrowers are expected to receive compensation ranging from hundreds of dollars up to 125,000.00 depending on the type of possible servicer error.  This agreement includes Aurora, Bank of America, Citibank,  JPMorgan Chase, MetLife Bank, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.”

Eligible borrowers are expected to be contacted by the payment agent by the end of March with payment details.

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