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Banks to Pay $9.3 Billion in Foreclosure Abuse Settlement
By Sarah Pierce
UPDATE: Payments in the Bank Foreclosure Abuse Settlement will begin April 12, 2013. Millions of borrowers can expect to receive a check in the mail by the end of the month.
Thirteen banks will pay a total of $9.3 billion to settle federal charges they engaged in foreclosure abuse during the U.S. housing crisis. Borrowers whose mortgages were serviced by one of the banks can expect to receive between a few hundred dollars and $125,000 from the settlement.
The Office of the Comptroller of the Currency (OCC) and the Federal Reserve announced the final mortgage abuse settlement Thursday, which includes Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.
The federal agencies accuse the banks of engaging in improper foreclosure methods in 2009 and 2010 that included wrongful denial of modifications, improper fees, flawed mortgage servicing and processing practices, and robo-signing – the process of rapidly approving numerous foreclosures and submitting them to courts without having read them to determine if they were proper.
Rust Consulting Inc., which specializes in class action settlement administration, will handle distribution of the funds and is expected to contact affected homeowners by the end of March. Eligible foreclosed borrowers will start receiving payments in April from a $3.6 billion fund. The remaining money will go to struggling borrowers in the form of assistance, including loan modifications and forgiveness.
Over 4 million people whose homes were in any stage of foreclosure in 2009 or 2010 and whose mortgages were handled by one of the 13 mortgage services will be covered by the foreclosure abuse settlement. These borrowers will not need to take any action to receive their payments, nor will they have to waive their legal rights to sue the banks as a condition for payment, according to reports.
Top Class Actions will provide further details on the Bank Foreclosure Abuse Settlement once official notice of the deal is published.
Updated April 10th, 2013
All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions
72 thoughts onBanks to Pay $9.3 Billion in Foreclosure Abuse Settlement
I met all criteria for all bank of America and file national mortgage and have heard nothing to date. I faxed modification paperwork back to BOA loans through the bank and was told numerous times they hadn’t got them and to Fedx the info for a fee, I was still getting the run around and told of missing pages…etc. Now two years After Boa bought my mortgage. its still not registered with Wayne county deeds showing2 mortgages withFirst Franklin when I only had one. BOA doesn’t want the house, me and my family don’t want it because of the unstable practices, uncertainties of not knowing when they will want it back, calling is so frustrating if you don’t have an Atty they will give you hell! Passing you back and forth to different reps in different departments, I have developed. a heart condition not knowing what to do for me and my family..these banks truly suck and refuse to give any valid info regarding the status of our likelihoods( our marriages, children) our homes. My family has been helpless since 10/2010 when they supposedly started proceedings …now we’ve been told to keep up with our taxes and all is “forgiven” with loan,,,however no compensation for extended stays, uprooting my children from their schools, separation of my husband, staying with relatives, the utility company trying to stick us with a large squatter bill whenthe house was vacant 2 yrs with a police report, and all other things that stopped our lives and way ofliving. And we still haven’t. been included in anything, not even info ad to where we stand with this house..very very frustrated, with no answers in Wayne county…help!
Bank of America; Forced flood insurance on our property, was not in a flood zone. Due to this, robo signing occured, and excelerated our house payment 10x going flood insurance rate, with their own private insurance company. We couldnt take out flood insurance because insurance companies noticed we were not in a flood zone. Went into foreclosure twice. During this whole time we keep making our original house payment and never was late. We exhausted all calling to B of A, and our local B of A. It was a financial run away train no one could stop!
hadassahbrownbrown@yahoo.com I brought a house in la puente ca. jp morgan and foreclose on us
My loan, was for $595,000. They sold the house for $197,000! Why is HomEq not mentioned in all this? I bet they are back in business under another name and still taking people’s homes!! We did not even know we were in foreclosure!! We were in modification!!
Why do you have to be behind in your payment,s to get any help even though you know you are facing imminent problem,s? Is this so the bank,s can take your house much easier because your in forclosure? If the bank,s and government were truly on your side they would help you before you reach that point. My mortgage holder actually laughed at me and said they will eventually foreclose on me and they enjoyed telling me at that meeting. Is there someone who can help me? I have never miss,ed a payment in 8 yr,s. Concern,ed citizan
Citi holds our mortgage and I hate dealing with them. My husband was laid off for 1 yr and they would never help us. Their solution was to raise our monthly payment by adding our home owners insurance and land tax to our bill. How does this help if you are already struggling to pay your monthly mortgage? They are all crooks. So glad to see Citi listed as a bank who has to pay individuals who they worked over. There were so many people who lost their homes who did not deserve such treatment. Hope these people see lots of money and not the lawyers.
I been working with my bank but no one yet as approve a loanmodficaction it seem like a waste of time.
Why don’t you ck out TCF Bank!!!!!
They are the worst to try and get anyone to explain things to you and the turn over rate on mtg. loan officers has something to do with it!
Why isn’t this bank discussed?
BOA is the worst. I tired to modify my mortgage of 142000 becase in Florida the value was so low. They were selling in the 20,000’s. They refused to modify.. foreclosed and never served me or contacted me at my new address. (once they said no the the modification i moved out) I should have stayed and saved the money but I just wanted to be done. Let me tell you not even 30 days after they foreclosed they BOA repurchased the property at auction for 16,000…. They are all crooks
Due to chase not remodifing our mortgage we moved out twice and even with income we had to walk away from our home years ago and to this day they still call. We signed over deed everything they still are trying to see what we plan on doing or when we will move even though they have a person caring for property etc we spent thousands trying to get them to work with us but noone on their end knew anything one full circle game that ruined my family’s home my kids in school etc yet can’t get in in this . How can I file class action suit ??? They did this to so many