Some Iowa borrowers will be receiving a big check in the mail from their banks as part of a settlement agreed upon by five mortgage servicers.
Eligible borrowers who had their mortgage serviced by Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, or Wells Fargo, lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim form will receive a check this month for approximately $1,480.
“These checks come from a $1.5 billion payment pool we negotiated and set aside as part of the National Mortgage Settlement,” said Iowa Attorney General Tom Miller, the lead state negotiator in the joint state-federal settlement. “These payments help compensate 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.”
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, however the payment will be evenly split between the borrowers.
If you would like more information on the OCC Independent Foreclosure Review settlement, go to www.OCC.gov and click on Independent Foreclosure Review.