Minnesota is one of the participants in the national mortgage settlement and will be eligible to receive up to $280 million to assist Minnesota borrowers impacted in by the mortgage servicing misconduct. The settlement provides a framework for providing benefits to borrowers whose loans are owned by five specific banks (Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo) as well as borrowers whose loans they service. However, the final version of the settlement still awaits the signature of a federal judge.
The federal government’s official National Mortgage Settlement website will be updated with current information as it becomes available. On the website, the federal government informs consumers that relief will not happen immediately. Consumers should expect that it will take up to two months to select an administrator to oversee the process of identifying qualifying recipients and six to nine months to deliver financial restitution and other assistance to homeowners.
Information for Minnesota borrowers impacted in by the recent mortgage servicing misconduct.
Over the next two months: Settlement negotiators will be selecting an administrator to handle the logistics of the settlement and monitor compliance.
Over the next six to nine months: the settlement administrator, attorneys general and mortgage servicers will work to identify homeowners eligible for the immediate cash payments, principal reductions and refinancing. Consumers eligible for assistance will receive letters.
Banks have three years to meet their obligations.
Only those with private mortgages with the following five banks qualify for assistance: Ally/GMAC, Bank of America, Citi, JPMorgan Chase, or Wells Fargo. Loans owned by Fannie Mae or Freddie Mac are not impacted by this settlement. For more information, visit the government’s National Foreclosure Website at http://www.nationalforeclosuresettlement.com/help.
The five banks that participated in this settlement also provide servicing for loans funded by Fannie and Freddie. For example, only about 20 percent of all loans serviced by Wells Fargo are funded by the company. You can check to see if you have a Fannie or Freddie loan by visiting their websites: www.fanniemae.com/loanlookup or www.freddiemac.com/mymortgage.
The federal government has created a website dedicated to the National Mortgage Settlement with frequently asked questions, state-specific contact information, and bank contact information.
The Minnesota Home Ownership Center will post regular updates on its website and has housing counselors who can answer questions about the settlement and foreclosure prevention resources. Visit the Minnesota Home Ownership Center website or call 651-659-9336 or toll-free at 866-462-6466.
The Minnesota Attorney General’s Office website has information regarding the settlement, including a Mortgage Assistant Report form. If you believe you are eligible for relief through this settlement but are concerned you will be difficult to locate, contact the Attorney General’s office.
If you are currently in need of information regarding mortgage or foreclosure programs call: 1-888-995-HOPE (4673).