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Banks to Pay $9.3 Billion in Foreclosure Abuse Settlement
By Sarah Pierce
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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.
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Updated April 10th, 2013
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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 lost my home. Countrywide, spectrum lending, Bank of America. My loan was transferred three times without knowledge or consent, until my loan ballooned out of control.
I lost my entire portfolio, my home was sold at an auction. i put down 15,000.00 and had 27, 000.00 equity. Purchased the house in 1999, lived there until 2010, when a sheriff srved me with foreclosure papers to vacate. Attempted to modify the loan denied assistance several times.
I filed a claim, I received notification that I was denied because my house was not my primary residence. I lived in my home from 1999-2010. I was served papers by the sheriffs department to vacate, after many attempts at -modification, with Countrywide / Spectrum lending/ Bank of America. I lost all of my savings and a hefty down- payment of 15,000.00 and 27,000.00 of equity. My home was in Roland Oklahoma. I currently live in a small one bedroom house in Kansas City, MO. My house was sold at auction in Sallisaw, OK. I want justice.
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BOA Sold part of my loan to SUNTRUST BANK
without my knowledge, and also continous
to increase my interest rates. Now they want to
foreclose. Please can anyone help????
BOA Continues to increase my interest rates, NOW THEY ARE GOING TO FORECLOSE CAN ANYONE HELP???
Our loan was service by First Franklin(BOA).
We requested for mod and was on trial for 3 months.After 3 months we’ve received a letter that our home is foreclosed.We went to court and was order to evict the home within a week.We were never offered cash for keys either.We didn’t have $ and had to find a place asap to move into and our lives has gone down hill ever since.Our thing was if we knew we were going to get evicted we would have saved the $ for moving rather than paying the 3 months trial.
Why does the fed’s allow banks like BOA to continue this pattern over and over again! I have never ever been behind or in trouble with a Mortgage until BOA bought my loan from Country Wide when they went under for bad business also! If regular citizens ran small business in the way BOA does, we would be criminally charged and shut down! It’s a total waste of time talking to them. Never get the same rep and sending certified mail is no different! Even the Fannie Mae rep I had for help finally just gave up with BOA because they wouldn’t even respond to her! Why and how are they allowed to continue to get away with this? It is so obvious that that system is in disarray, which in turn is putting American families in dissarray! Maybe we all should get together and sign a petition directed to the president of the US to start a formal investigation! It is our rights!
Have a socalled modification Loan with AHMS, not sure if we qualify for a settlement. It has been 3+ years, with
2 modification co which we spent over $ 9000.00 and received nothing in return (only ripped use off) turned in to the FBI (long gone. Hired an Attorney received a modification loan which consisted of just taken are loan
split in half for 37 years no reduction in interest payment and a Ballon payment of 154000.00 . The house only appraised in our area at 126,000.00. is there anything we can do, since only $ 800 per year goes to princepal.
I had the same problem with B of A back and forth filling form for a modification I would call to make sure the had the documents then I would get a call 3 days later asking me for more documents When I would get the call thay would ask why I was so behind in my payment so I would tell them this went on and on everytime I got a call the same question. I would ask about my modification and the answer was I was canceled because they did not get any of my documents. I ask to speak to someone and the answer was to do a short sale or walk away from my home.. 2 weeks later they told that I could do a trial of 3 payment and if I did that I could stay in my home. I did the 3 payments then I didn’t hear from them so I called I was told the account was sold I was never told I had no idea who to call B of A told to wait that they would call me I ask who I never got answer they hung up on me. a week later I got a call from Select Portfolio Services I had to start all over again I have been making payment to them but I’m behind in one of the payments because B of A did not transfer any payment to them I call B of A they ask for my loan number which gave them the one I had with them and the answer was its no longer in our system we can not help you and hung up the phone.. I need help just like everyone here Just one more thing i would lie to say when I told B of A about how when the govment help you out yo know what they said we paid that loan we don’t owe any money to anyone. Yes they got the help to pay there board members and everyone else I hope they pay back all of us who at one time doing good making our payments on time B of A your no longer a friend of mine
We have been struggling with Bank Of America regarding our mortgage. We have submitted the needed info so often, but they either lose it or say they need more information. I couldn’t even tell you how many times we had to refile and give the same info. Finally in 2009 we filed a Chapter 13 to save our house. Now, again we filed a loan modification and all was good, once I got the attorney general’s office in my state, they started working harder to help us get this. So, I had 3 trial payment for Dec, Jan and Feb. So, I made the payment in Dec. and they held onto the check so that it is past the grace period, I called then the check came through. In Jan, I was dealing with the same thing, this time I call and talked to someone who is working on my account. I sent the payment and it didn’t come through and they said they didn’t receive it. After calls back and forth with this guy and me, we decided that we should do a check by phone and cancel payment on the check that no one could find. Once we did that, believe it or not, both checks hit the account at the same time, same day! So, to be on the safe side, in Feb. I called this rep back again and we just did a check by phone. So, I was told by this rep that was helping me to stop payment on the mailed in check and leave the check by phone. Well, I got a letter this past week saying that we didn’t qualify because of the payments not being made at the right time. REALLY! I called the Attorney Generals office again to let her know what was going on. She did contact B of A and was told that Jan. we not only had a late payment, but we issued a payment for the wrong amount and then that we stopped payment on the $500. I have talked with the Attorney Generals office again to let her know that what they told her was wrong and that I can print off my checking account to verify that they correct payments have been made. I can send her a copy of the checks that hit the bank and the dates they hit it. So, I made another call to the my rep from B of A, and he told me that he had already sent emails to the people who made the decision advising them that this is not our fault and that we should qualify for a loan mod. I am so sick of dealing with B of A!!!!! I would never advise anyone to go through them, they are only a pain in the butt.
HSBC sucks. My husband and I are on SS disability, they keep raising the payment amount. We sent payments that they returned, do they want the money, our home and/or our blood? They are getting off too easy, can’t wait to see how much they have to pay for their money laundering case against them. They put us in foreclosure one month and cancel it the next. Grrrrrrrr