Eligible Borrowers to Get Checks ‘By Mid-Year’ in National Mortgage Settlement


Eligible Borrowers to Get Checks ‘By Mid-Year’ in National Mortgage SettlementCompensation checks to borrowers who submitted claim forms as part of the National Mortgage Settlement will likely be mailed out by “mid-year 2013,” according to a brief update on the settlement’s website.

Details remain sparse, but the exact amount of the payments to be mailed to each eligible claimant is “not yet known.”

However, “it will exceed the minimum payment of $840 that was indicated on the claim form,” the site’s statement said.

About $1.5 billion under the settlement with the top five mortgage lenders are being used to compensate borrowers who lost their home to foreclosure between January 1, 2008, and December 31, 2011.

Claim forms were mailed to eligible borrowers in late September/early October of 2012. The deadline to respond was Jan. 18 of this year.

The $25 billion National Mortgage Settlement was announced a year ago, and is separate from the Independent Foreclosure Review, which was transformed into an $9 billion settlement with 13 banks last month. The newest $9 billion deal is tied to shoddy foreclosure procedures or improper evictions from 2009 and 2010.

The National Mortgage Settlement stemmed from revelations that lenders allowed the improper “robo-signing” of foreclosure documents that were unverified, and in many cases, inaccurate. The five mortgage servicers that are parties to the settlement: Ally/GMAC; Bank of America; Citi; JPMorgan Chase; and Wells Fargo.

According to an update from the settlement’s “monitor” today, the banks completed $45.83 billion in relief to affected borrowers during the first ten months of the settlement’s compensation phase,  March 1, 2012-December 31, 2012.

Nonetheless, the settlement has come under fire from consumer advocates for failing to help most borrowers stay in their homes.

Short sales accounted for more than one-third of the 2012 relief amount, or $19.5 billion.  In short sales, the home is sold for less that what is owed. But that means the borrowers were not able to stay in their homes.

Here’s the breakdown from the settlement monitor’s update released today.

Consumer relief highlights (March 1 – December 31, 2012)
For state-by-state information, click here.

  • Total consumer relief – $45.83 billion
  • Relief to support home ownership – $24.698 billion
    • Completed first lien modification forgiveness – $6.04 billion
    • Completed forgiveness of pre 3/1/2012 forbearance – $1.369 billion
    • Estimated consumer relief of refinances completed – $2.209 billion
    • Active trials in progress – $3.486 billion
    • Completed second lien modifications and extinguishments – $11.594 billion
  • Short sales completed/deficiency forgiven – $19.505 billion
  • Other programs – $1.627 billion

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26 Responses to “Eligible Borrowers to Get Checks ‘By Mid-Year’ in National Mortgage Settlement”

  1. Karen banks says:

    Geez I wish they would define mid year seems like its taken forever already

  2. Kimberly says:

    So June? is the month 1/2 way mid year? It’s long over due for us who lost our homes in 2008. Nothing but struggle and the banks and lenders commited fraud. Why did all of this happen in the first place? Just to lower the housing market?

  3. Anonymous says:

    I missed the deadline for this, is there anything I can do?

  4. Janelle says:

    As if losing our houses were’t bad enough, waiting for these checks if frustrating! And them not giving us a straight answer of how much and when we wil recieve them is to!

  5. NJ says:

    I totally agree with you Janelle. Hopefully we will get the check in June because that is mid year to us.

  6. Georgia says:

    I received a postcard indicating it definitely would be within 8-12 weeks from 3/15/13. I also read that currently $1.5 billion will be distributed between roughly 750 thousand, meaning an average of $2000.00 per filer.

  7. momo says:

    Wow now that’s our gov. in action.lol

  8. Lani says:

    I, like Georgia received a postcard from “Rust something or another” that said 4-8 weeks. I didn’t hear nor read any estimate of amount. Was actually even curious if that postcard was real or a scam.

  9. Monica says:

    Here’s $2000 sorry you lost your home and it ruined your life. And don’t forget we’ll be taxed on that $2000 too.

  10. Maribel says:

    $2k-would be great but I read that it depends on the situation-as little As $50.

  11. Rhonda says:

    I was told by Attorney General’s office that the National Mortgage Settlement checks will be mailed on May 26, 2013. I figure the Independent Foreclosure Review checks will be around the same time, which will be mid year (1st of June). I also read we will have to pay taxes on this money, the banks can write the money they are refunding back to us as a loss on their income taxes, and we will have to sign a waiver stating that if we accept this check, we will not file an individual lawsuit against the servicer. I have also read that both checks will be over $800. That could be $801 ! So comforting knowing that the loss of my home through no fault of my own will bring me $800 to replace it!. I was forced to move into an apt where I pay $200 over the amount of the trial period payment for my home that they took from me. So unfair!

  12. TRICA says:

    SO WHEN WILL THE $$$$ BE MAILED !!!!! ALL THEY IS SAYING IS THE MID 2013 !!! THEY REALLY LOST ME ON THAT <<< I THOUGH IT WAS COMING IN MARCH N KNOW IT IS APRIL !!!! ugh

  13. Rosie says:

    What I really want to know is, are the banks going to.whitewash our credit? I struggled to keep my home after a debilitating illnes. When I asked the lender to just lower my payment they refused and I had to walk away. But with the so called payout, what about our credit scores?

  14. trica says:

    so when will you all …UPDATE US ON WHAT IS GOING ON ????????

  15. chaz says:

    @Tricia, your referring to the nationalmortgagesettlement.com of payments coming mid year. The IFR is sending out checks for this particular settlement starting today.

  16. trica says:

    hello @ Chaz yes I am talking about the national mortgage settlement they keep talking about the mid year 1st it was the 1st few mouths in 2013 know they say the mid year I am really lost ,,,& thanks for telling me that … Ok Chaz who sending checks out know ?????

  17. Unca C says:

    What I find irritating is the fact that this money has already been sent to the various states, and they’re just sitting on it. The portion of the settlement that was meant to go to states has already been used, and most likely spent. But, the money meant to be sent to homeowners who lost their homes just sits there. I half expect to hear some BS soon regarding the checks not being mailed out after all…I’ll believe it when I see it.

    The other thing that is funny is that the Independent Review settlement checks are ready to be mailed out or are already being mailed out…This settlement was just reached a month or so ago, and the checks are ready to go. The National Mortgage Settlement has been done for almost a year, yet the checks are not going out until “mid-year”…

  18. Unknown says:

    That number is now 650, with 236 votes for a class action suit! Getting close enough in numbers to actually start a serious discussion on finding a lawyer etc. Here is the poll, please register and vote! http://foreclosurevictims.freeforums.org/class-action-lawsuit-yay-or-nay-t94.html

  19. Jeff says:

    Just for clarification. If you received a post card in the mail from Rust Consulting informing you of payments that are going out now, That is through the Independent Mortgage Review Settlement.

    The National Mortgage Settlement is a separate settlement. Those checks will be sent mid-year

    So, two different settlements. I was confused at first myself and did a little research. Also called Rust Consulting and they informed me that they were handling the Independent Mortgage Review Settlement and have nothing to do with the National Mortgage Settlement. Hope this helps clear up confusion for some of you folks as well.

  20. Ericajohnson says:

    Thank you Jeff, I am a part of both. Also Rust Consulting is always handling the payment for the National Mortgage Settlement. I still think that these big banks are nothing but a bunch of crooks. I refuse to buy again I rather rent.

  21. Jax says:

    @ Unca C I agree with you 100%. The attys general have had this settlement in place longer than the IFR settlement. Each state has received the funds and has been sitting on the $$$ ever since. How can these funds come AFTER the IFR disbursement, when the settlement happened before? It’s all bogus and fraudulent. I’m surprised more people aren’t questioning this

  22. trica says:

    @ Jax I am with you on that now the NMS say that the $$$$ will be mailed out at the end of May,,, really they say it will be 4 to 6 weeks and watch something else comes up …

  23. Chris says:

    I spoke to Rust Consulting both yesterday and today. I was told the following:
    They will not tell you the exact of amount of checks or how many claims were filed to collect against the 1.5 million allocated to borrowers. They will not provide the exact date for this month checks will begin to be mailed. They state the AG office does not want that information released to the public. The Public? How about the victims of this incredible scam pulled off by Wall St and the Mortgage Companies. They can’t tell us any specifics?!
    I was also told the 1.5 million will be distributed among 750k claimants-that was yesterday.
    Today I was told the 1.5 million will be distributed among 2 million. WTF
    AG states they do not know the percentage of number of claimants to date but that Rust Consulting does and they never told Rust to withhold that information.
    If you do the math 1.5 mil divided by 750k is not 840 but 2000. And if you divide 1.5 mil by 2 mil it is 750. They can’t even use a calculator correctly. This is like trying to determine the number of jelly beans in a jar. They just throw erroneous numbers and information out there.
    Whole thing makes me sick. 15 years as a homeowner, only to have it taken without correct foreclosure proceedings, house sat for 2 yrs and sold for half of what I paid for it. Ya, that was the answer GMAC!!!

  24. rhondainmo says:

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  25. marty says:

    “Just for clarification. If you received a post card in the mail from Rust Consulting informing you of payments that are going out now, That is through the Independent Mortgage Review Settlement.
    The National Mortgage Settlement is a separate settlement. Those checks will be sent mid-year
    So, two different settlements. I was confused at first myself and did a little research. Also called Rust Consulting and they informed me that they were handling the Independent Mortgage Review Settlement and have nothing to do with the National Mortgage Settlement. Hope this helps clear up confusion for some of you folks as well.”

    This post actually creates confusion.

    The payments going out now (actually they went out through April and into May) are for the IFR – Independent Foreclosure Review.

    I don’t know who you spoke to at Rust Consulting, but they are not very well informed. Rust Consulting IS the Administrator for BOTH the IFR and the National Mortgage Settlement.

    I am pretty sure this post clears up the confusion of the above post.

  26. RAY HERBST says:

    WHAT A JOKE THANKS FOR NOTHING PRES. OBAMA LOSER

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