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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
Congrats Kerry! It’s little consolation and certainly make things right, but am glad you got a bit of vindication and hope your health problems are a thing of the past!
I called Rust 4/15 and 4/17 they told me my payment has not been issue yet
Kerry Caber-That’s great! Like you said 6k is way better than $300.
6,000. for me today ! whoohoo. I was expecting 300 after reading the doom and gloom. I needed this so much for medical bills. I am so happy.
I did lose 128,000. that was the down payment but after the last few years I am happy for anything.
I received my check today for a miserable $300. Three Hundred Dollars. It says is “FINAL”. I lost my house to foreclousure after being charged more than I owed. Spent almost 5,000 defending it in court. MIAMI dade county JUDGES are mostly retired old farts who always side with the Big Pretender Lenders, The Banks or Bangksters if you will. You dont stand a chance for justice here in Sunny South Florida. The banks get it their way even though they have no standing in the first place. GOD have mercy on this country of ours for allowing these miserable “Too Big Too Fail, Too Big To Prosecute” bangksters steal the American Dream from us. “A Country without Justice is a country without Peace” America home of the brave has become America home of the Fraudsters, the robo signers, the pretender lenders, the Bank Mafia. PEACE to you all.
Copy & Paste Maybe this will help http://www.occ.gov/news-issuances/news-releases/2013/nr-ia-2013-60a.pdf
I think they are just going to send out checks for the amounts that are under $700 on Friday and the larger ones won’t get mailed until July. Yep, I think it is a wait and see situation.
Julie-I thought you’ve request a review if so you should be getting $62k and those who didn’t will be getting $31k in your category.The thing is we all know where we fall into on that payment sheet but will we get that amount because what they say is final.I guess we’ll just have to wait and see right.
Hi NJ. I went to the website and the numbers made me so angry. I should be getting $31K since they foreclosed while I was in bankruptcy, but I don’t trust them. My own situation notwithstanding, the numbers and apparent negligence just makes my head spin.
Julie if you go to http://www.federalreserve.gov and click on the pdf payment agreement detail.There’s a breakdown and detail of the payment which they do start at $300 – $125k
Please check it out