TOPEKA – (March 12, 2012) – The settlement agreements with the nation’s five largest mortgage lenders were formally filed today with the United States District Court for the District of Columbia, Kansas Attorney General Derek Schmidt announced.
The landmark mortgage settlement, announced last month, is expected to bring about $50 million in relief to more than 4,000 Kansas homeowners and those who have lost homes to foreclosure. The joint settlement with 49 states, the District of Columbia and the federal government resolves allegations of robo-signing foreclosure affidavits and misconduct in the servicing of residential mortgage loans by the five companies. Five mortgage services who are party to the agreement are Bank of America, JP Morgan Chase, Citibank, Wells Fargo, and Ally Financial (GMAC).
Further investigation into misconduct in the mortgage market is ongoing.
Consumers who are eligible for restitution under the settlement will be contacted and offered the opportunity to file a claim. Kansans can find more information online at www.ag.ks.gov/mortgage or by calling the Attorney General’s Consumer Protection Hotline at 1-800-432-2310.