TOPEKA – (June 5, 2013) – Kansas borrowers who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480, Kansas Attorney General Derek Schmidt announced today.
More than $9 million will be distributed to 6,350 Kansans. Eligible borrowers had their mortgage serviced by one of the settlement’s five participating mortgage servicers, lost their home to foreclosure between January 1, 2008, and December 31, 2011, and submitted a valid claim form. The participating servicers are Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo.
“These payments are in addition to mortgage assistance that already has been provided to more than 1,500 Kansans under terms of our settlement,” said Schmidt, noting that more than $54 million in mortgage relief already has been provided to Kansas homeowners. “Through this additional payment, borrowers will receive compensation for loan servicing abuse that happened in the past.”
Schmidt said accepting the payment does not limit a borrower’s ability to seek additional relief through a separate private lawsuit or other claims.
Nationally, the settlement administrator will mail valid-claim payments to borrowers listed in 962,278 loan records from June 10 through June 17. The payments come from a $1.5 billion pool of funds set aside by the mortgage servicers as part of their legal settlement with the attorneys general and the federal government.
In February 2012, 49 state attorneys general, including Attorney General Schmidt, and the federal government announced the historic joint state-federal National Mortgage Settlement with the country’s five largest mortgage servicers. Preliminary data shows that, prior to distribution of these checks, the servicers have provided more than $50 billion in direct settlement relief to borrowers nationwide, including $54.4 million to Kansans.
Every borrower who filed a claim will receive a letter regarding their outcome. Borrowers with questions about their payment should call the settlement administrator at (866) 430-8358. Borrowers with general questions about the National Mortgage Settlement may call the Kansas Attorney General’s Consumer Protection Division at (800) 432-2310 or visit www.ag.ks.gov.