National Mortgage Settlement Payments Begin Today

Bank checkBorrowers who lost their homes to foreclosure at the height of the mortgage crisis and submitted a valid payment claim form through the National Mortgage Settlement will receive a check this month for approximately $1,480. This exceeds the minimum payment of $840 that was indicated on the claim form.

Checks go out beginning today, June 10, 2013, and will be completed by June 17, 2013.

Who Will Get Checks?

Eligible borrowers had their mortgage serviced by one of the settlement’s five participating mortgage servicers (Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo), lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim. (To learn more, see National Mortgage Settlement: Can You Benefit.)

How Much Will You Get?

The payment amount is uniform for all eligible claimants throughout the country, however a few borrowers will not receive a check in the initial mailing or will receive a split payment in the following circumstances:

  • If you are divorced or separated from a co-borrower and no longer live at the same address, you will receive a check for less than $1,480. The payment will be split evenly between the borrowers.
  • If you submitted a claim form, but do not have a valid Social Security number on file, payment will be delayed while tax-related issues are addressed.
  • Two mortgage servicers recently provided information on an additional 31,000 borrowers, and as a result, they were unable to be included in this distribution. These consumers will receive a notice and have the opportunity to submit a payment application later this summer.

Every borrower who filed a claim will receive a letter regarding their outcome. If you have a question about your claim or payment, call the settlement administrator, Rust Consulting, at 866-430-8358. The deadline to file a claim was January 18, 2013.

Keep in mind that the National Mortgage Settlement and Independent Foreclosure Review (IFR) settlement are different, though Rust Consulting is the administrator for both settlements. IFR payments began in mid-April of 2013 and the final payments will be sent in mid-July. For more information on the IFR settlement, go to www.OCC.gov and click on “Independent Foreclosure Review.”

by Guest Blogger Amy Loftsgordon