Skip to main content

Are you affected by the National Mortgage Settlement?

By April 2, 2014November 21st, 2019No Comments

Are you affected by the National Mortgage Settlement?

Do you qualify for a cash payment from your lender as a result of your foreclosure?

Are you struggling to make your mortgage payment and need a loan modification?

Do you wish you could refinance but are too underwater?

In February of this year five of the largest mortgage servicers reached a settlement agreement with the federal government and forty-nine states, called the National Mortgage Settlement. It is the “largest consumer financial protection settlement in US History,” providing $25 billion to borrowers and the government.

The five banks:

  • Ally/GMAC,
  • Bank of America,
  • Citi,
  • JPMorgan Chase, and
  • Wells Fargo

Were each found to have violated the law by routinely signing foreclosure documents that may have contained inaccuracies – and signing those without a notary public. Because of the Mortgage Settlement $1.5 billion will be sent directly to homeowners who lost their homes through foreclosure.

If your home was foreclosed during 2008, 2009, 2010 or 2011 and your loan was owned or serviced by one of the five banks in the Settlement, you may be entitled to a cash payment as part of the Settlement, whether or not you suffered any direct financial harm.

Notices and claim forms were sent to borrowers during September and October, and must be submitted online ( or postmarked by January 18, 2013 to receive a cash payment. If you believe you were eligible for relief but never received a claim form, you may call the National Mortgage Settlement Administrator at 1-866-430-8358.

Also because of the Mortgage Settlement, the banks will contribute billions of dollars toward loan modifications and refinances. Homeowners who currently need loan modification have the opportunity for immediate relief since the banks are required to perform more loan modifications and reduction of principle balances in both first and second mortgages. Homeowners who are currently making their payments but owe more than their home is worth will finally have refinance options – at currently low interest rates. Your mortgage servicer may contact you by phone or mail to discuss modification or refinance options, but you may call them directly to discuss any options you will have because of the Mortgage Settlement.

Look on your mortgage statement to see if your mortgage servicer is one of the above five banks or call the contact number to see if your loan is owned or serviced by one of the banks included in the Mortgage Settlement. If you have additional questions about the National Mortgage Settlement you can visit