The Federal Reserve Board (FRB) announced a change to the enforcement action filed against GMAC Mortgage after it was uncovered that they wrongfully foreclosed on homeowners using deficient loan servicing practices. GMAC is now required to pay out cash payments of $230 million to mortgage borrowers – $32 million of which will provide loss-mitigation assistance.
This agreement will reach 232,000 borrowers who were facing foreclosure in 2009 and 2010, assuring they will receive their share of fair cash compensation. Additional details will be announced in the near future.
It has been shown that the bankruptcy court that is managing the bankruptcy proceedings involving GMAC Mortgage has approved the amended enforcement action. The goal of the amendment is to ensure that the Independent Foreclosure Review will conclude GMAC Mortgage borrowers.
Approximately 4.4 million borrowers will receive a total of over $3.8 billion in cash compensation under the Independent Foreclosure Review, while an additional $5.8 billion will be provided to borrowers for loan modifications and other forms of loss mitigation assistance. GMAC borrowers should be aware that accepting these payments will not prevent them from taking further legal actions against the institution. All complaint gateways will remain open to all affected in the case.
Other banks that the OCC and the Federal Reserve entered entered an agreement with include: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.
If you are a former GMAC borrower or were previously with one of these 13 servicers, you can call 1-888-952-9105 to ask further questions.