Home Loans and Support

Former GMAC Borrowers to be Compensated Under $230 Million Enforcement Action

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.

About Alex Ferreras

LoanSafe.org is America's #1 consumer mortgage forum with over 32,000 members. Get the latest news, information and tips from an online community you can trust.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Get free unbiased help with your tough questions. Start your own threads and post replies with over 60,000 people just like you.

Connect with us

LoanSafe Forums


"Hello Moe, I just wanted to tell you, your website has saved my life (literally), I stumbled on your site in the middle of losing my home, I was able to network with people going through the same thing as I am. I didn't feel alone anymore, I have tried to give back and counsel those that haven't walked in my shoes yet. We hear so much about what is wrong with America, I just wanted you to know, you are whats "right" with America."

Nina Mitchell
Loansafe & MoeSeo Inc. © 2014 | LoanSafe.org is not a bank, lender, mortgage broker, law firm or affiliated with the US Government. Privacy Policy