National Mortgage Settlement Information and FAQs

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
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After many months of negotiation, 49 state attorneys general and the federal government have reached agreement on a historic joint state-federal settlement with the country’s five largest loan servicers:

The settlement will provide as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998.
The agreement settles state and federal investigations finding that the country’s five largest loan servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct. Both of these practices violate the law. The settlement provides benefits to borrowers whose loans are owned by the settling banks as well as to many of the borrowers whose loans they service.

  • About the Settlement: Learn about the settlement, who is affected and what claims may still be pursued against the banks. Find links to your state Attorney General’s Office to find state-specific information and contacts.
  • Help for Borrowers: Learn how to find out if your loan is affected by this settlement, the timeline for relief, how you will know if you are eligible. Find links to your state Attorney General’s Office to find state-specific information and contacts.
  • News: Read the national news release and find links to your state Attorney General’s Web site for state-specific news.


Joint State-Federal Mortgage Servicing Settlement FAQ | NationalMortgageSettlement
 
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Upside

LoanSafe Member
Dec 7, 2009
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Anyone know where the address can be found for the Joseph A Smith--elected Settlement Independent Monitor???
 

mark_robin

LoanSafe Member
Apr 11, 2012
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Hi Cat, Do you know who will qualify for loan mods? I live in AZ owe $500K house worth $250K. Does it matter how upside down I am?
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
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48
Colorado
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lolodl

LoanSafe Member
Jul 2, 2012
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Hi Cat, regarding DOJ principal reduction do you have to "ask" your servicer to consider you for it or do you have to wait to be contacted? Regarding the property in NJ, I spoke with my rep yesterday regarding HAMP and its in underwriting. She said I should here back in 30 days.
Just wondering if during underwriting, is a principal reduction under the national mortgage settlement considered?
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Hi lolodl,


You can review the FAQs with Chase about the settlement here;

https://www.chase.com/online/services/document/9619_settlement_faqs.pdf

If you still have other questions about the settlement, call us at: 1-866-372-6901

Call Center Hours (All times Eastern)
Monday-Thursday: 8:00 AM - Midnight
Friday: 8:00 AM - 11:00 PM
Saturday: 8:00 AM - 5:00 PM
 

RobinP

LoanSafe Member
Nov 14, 2012
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Mortgage Oversight Response

I sent an e-mail to Joseph A Smith at [email protected] and he did respond. Thank you for reporting your loan issue to the Office of Mortgage Settlement Oversight. We appreciate your time and willingness to help inform the settlement’s monitoring process. <wbr><wbr>As the Monitor, I cannot intervene with the servicer on your behalf. However, the information you have provided is very important because it allows me to see firsthand how servicers are treating their customers. If a number of consumers are experiencing similar problems with a particular servicer, this may represent a pattern or practice in violation of the agreement that I need to investigate further.<wbr><wbr>With your participation, I can better enforce the mortgage servicing standards outlined in the agreement, which helps make the settlement more meaningful for homeowners across the country.<wbr><wbr>Thank you again for your help.<wbr><wbr>Sincerely,<wbr>Joseph A. Smith, Jr.

Everyone should send an e-mail regarding their awful experience with Chase and maybe, just maybe they will be forced to do something.
 
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Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
I sent an e-mail to Joseph A Smith at [email protected] and he did respond. Thank you for reporting your loan issue to the Office of Mortgage Settlement Oversight. We appreciate your time and willingness to help inform the settlement’s monitoring process. <wbr><wbr>As the Monitor, I cannot intervene with the servicer on your behalf. However, the information you have provided is very important because it allows me to see firsthand how servicers are treating their customers. If a number of consumers are experiencing similar problems with a particular servicer, this may represent a pattern or practice in violation of the agreement that I need to investigate further.<wbr><wbr>With your participation, I can better enforce the mortgage servicing standards outlined in the agreement, which helps make the settlement more meaningful for homeowners across the country.<wbr><wbr>Thank you again for your help.<wbr><wbr>Sincerely,<wbr>Joseph A. Smith, Jr.

Everyone should send an e-mail regarding their awful experience with Chase and maybe, just maybe they will be forced to do something.
Please keep us posted on how it goes for you.
 

opensource

LoanSafe Member
Jul 15, 2011
112
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Cat, do you think a 2nd wave of extinguishment letters will go out towards the end of this year? If I read from their site correctly, it seems they're spreading this settlement out over 3 years. Our 1st was an inhouse mod and from reading the exhibits, it seems like we would qualify for an extinguishment but ultimately, it's up to however the investors see fit. I contacted the mortgage oversight dept and also received a very quick reply and an explanation that what is listed on the exhibits is the minimum a servicer can consider. I'm struggling between countering Chase's offer to settle vs. whether we're entitled for extinguishment which I guess is still no guarantee. Thanks for your insight!
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Cat, do you think a 2nd wave of extinguishment letters will go out towards the end of this year? If I read from their site correctly, it seems they're spreading this settlement out over 3 years. Our 1st was an inhouse mod and from reading the exhibits, it seems like we would qualify for an extinguishment but ultimately, it's up to however the investors see fit. I contacted the mortgage oversight dept and also received a very quick reply and an explanation that what is listed on the exhibits is the minimum a servicer can consider. I'm struggling between countering Chase's offer to settle vs. whether we're entitled for extinguishment which I guess is still no guarantee. Thanks for your insight!
I believe that the lenders themselves are in charge of the distributions based on eligibility. With Chase they have contact numbers here;

https://www.chase.com/online/services/mortgage-servicing-settlement.htm

Also if the following isn't the number you used, you may want to give it a try to ask;

You can contact the National Mortgage Settlement Administrator at 1-866-430-8358.
 

ifihadknown

LoanSafe Member
Aug 21, 2010
7
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The Nat'l Mortgage Settlement Is for You

While some may be pessimistic about the impact of the national mortgage settlement, I would strongly encourage you to read at least exhibit A, which contains Servicing Standards that the 5 major banks had to implement. Since this is a Consent Judgment, the sanctions are stiff, $1 milliion-to $5 million /violation. I believe that banks know that if enough people complained that they are still not complying, they will get their act together or else face stiff fines. You can file a complaint at consumerfinance.gov (consumer financial protection bureau website). Your complaint will be forwarded to your bank as well as to the monitor who has oversight of the Consent Judgment entered in the lawsuit. The banks have liability under the Consent Judgment for 3 1/2 years. So it should expire sometime in mid-October 2015, at which time laws will have been enacted to protect consumers. If you dont file a complaint, the monitor overseeing compliance will wrongly gather that the banks are complying. I used the complaint process because of Chase's non-compliant dual tracking-(foreclosure and loan modification at the same time). Chase is now considering me for a modification. Whenever I see that Chase is not in compliance with the Consent Judgment regarding the service of my loan, I will file a complaint. I will be heard, and so can you. What will you do?
 
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Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
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While some may be pessimistic about the impact of the national mortgage settlement, I would strongly encourage you to read at least exhibit A, which contains Servicing Standards that the 5 major banks had to implement. Since this is a Consent Judgment, the sanctions are stiff, $1 milliion-to $5 million /violation. I believe that banks know that if enough people complained that they are still not complying, they will get their act together or else face stiff fines. You can file a complaint at consumerfinance.gov (consumer financial protection bureau website). Your complaint will be forwarded to your bank as well as to the monitor who has oversight of the Consent Judgment entered in the lawsuit. The banks have liability under the Consent Judgment for 3 1/2 years. So it should expire sometime in mid-October 2015, at which time laws will have been enacted to protect consumers. If you dont file a complaint, the monitor overseeing compliance will wrongly gather that the banks are complying. I used the complaint process because of Chase's non-compliant dual tracking-(foreclosure and loan modification at the same time). Chase is now considering me for a modification. Whenever I see that Chase is not in compliance with the Consent Judgment regarding the service of my loan, I will file a complaint. I will be heard, and so can you. What will you do?
You are absolutely correct to use the consent order language as evidence for argument. I myself have done this not only with the CFPB, but the OCC violation of Independent Foreclosure Review. My house has a bogus trustee's deed recorded on the property and that deed was used to sell to a third party. I am showing violation of recording laws and power of sale violation within the text of the deed. This shows Theft Elements under criminal code law of my state. The bank is subject to a five million dollar fine. People might go to jail over this one.