BROCKTON--State Attorney General Martha Coakley and Attorneys General from across the country have entered into a $25 billion nationwide state-federal settlement over unlawful foreclosures, that is expected to bring an estimated $318 million dollars in assistance to Massachusetts borrowers.
The agreement, according to a prepared statement from Coakley's office, will settle many claims made as part of Coakley’s lawsuit against the five banks filed on December 1, 2011.
In Massachusetts, this agreement provides for immediate relief and a “carve out” to the agreement to allow her office to continue to pursue further relief in the courts against the banks over two Massachusetts-specific issues.
Those claims include initiating foreclosures without holding the actual mortgages--so-called “Ibanez” violations--and allegedly corrupting the land recording system through the use of the Mortgage Electronic Registration System (MERS).
The agreement will settle all other claims made as part of Coakley’s lawsuit against the five banks filed on December 1, 2011.
Attorneys General from 49 states have agreed to join the settlement announced today, Feb. 9 in Washington, D.C.
The banks will provide an immediate infusion of millions of dollars in relief for struggling homeowners.
It also allows the Attorney General’s Office to continue to pursue claims against the banks for initiating illegal foreclosures in the state and corrupting the land court system.
Through this national state-federal agreement, five major lenders are expected to provide approximately $14.6 million in cash payments to Massachusetts borrowers, $257 million worth of mortgage relief, and a direct payment of more than $46.5 million to the Commonwealth that will be used to assist homeowners. The agreement settles allegations of widespread use of fraudulent documents by Bank of America, Wells Fargo, JP Morgan Chase, Citi, and Ally Financial.
Massachusetts estimated total share of the settlement is $317,915,272:
- Massachusetts borrowers will receive an estimated $224,000,819 in benefits from loan term modifications and other direct relief.
- Massachusetts borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and suffered servicing abuse would qualify for $14,625,790 in cash payments to borrowers.
- The value of refinanced loans to Massachusetts underwater borrowers would be an estimated $32,729,601
Because of the complexity of the mortgage market and this agreement, which will span a three-year period, in some cases participating mortgage servicers will contact borrowers directly regarding loan modification options.
However, a first step for borrowers should contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under terms of this settlement.
The first step consumers should take is to contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under terms of the state-federal settlement:
Hotlines:
Bank of America: 1-877-488-7814
Citi: 1-866-272-4749
Chase: 1-866-372-6901
GMAC: 1-800-766-4622
Wells Fargo: 1-800-288-3212
More information can be found on the state-federal settlement at the websites below:
http://www.nationalmortgagesettlement.com/www.HUD.govwww.justice.gov
Consumer who may have additional questions about the settlement, have issues or concerns dealing with their mortgage servicer or other concerns can submit a complaint online, email agocs@state.ma.us, or call the Attorney General’s Office at 617-963-2170.
More detailed information about the mortgage settlement is available here .
Since 2007, Coakley has been a national leader in addressing the foreclosure crisis by holding banks and investment giants accountable for their role in the economic downturn.
Her office has already recovered more than $600 million in relief for Massachusetts homeowners and investors.
Coakley’s office has ongoing investigations into the foreclosure crisis and will continue additional efforts to stabilize the housing market in Massachusetts.
More information about Attorney General Coakley's initiative to address the foreclosure crisis is available.
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