Tennessee residents who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480. These mortgage servicing abuse payments will total almost $27 million for Tennessee.
Eligible borrowers include those who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and had their mortgage serviced by one of the settlement's five participating mortgage servicers. They also needed to submit a valid claim form. The participating servicers include Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, Wells Fargo.
"These checks come from a $1.5 billion payment pool we negotiated and set aside as part of the National Mortgage Settlement," Attorney General Bob Cooper said. "Although we realize this does not make up for the stress and frustration many borrowers suffered, these payments will help compensate foreclosed borrowers for the mortgage servicing abuse that they likely endured. And I'm pleased that the final amount of $1,480 is much higher than the minimum amount we first announced, which was $840."
Attorney General Cooper 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 valid claim payments to 962,278 loan records from June 10 through June 17.
"These payments are part of our efforts to hold the banks accountable through the National Mortgage Settlement," Attorney General Cooper said. "In addition to compensating borrowers for the servicing abuse that happened in the past, we're trying to stop these practices through the settlement's tough new mortgage servicing standards."
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.
* Some borrowers will receive a check for less than the approximate $1,480 payment in situations where 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.
* 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.
* 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.
National Mortgage Settlement, Independent Foreclosure Review (IFR) Payments are Separate
The 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.
For more information about the National Mortgage Settlement, please visit www.nationalmortgagesettlement.com. For more information about free foreclosure prevention counselors or mortgage assistance programs in Tennessee, homeowners may visit www.tn.gov/attorneygeneral or www.KeepMyTNHome.org.