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Saturday, March 23, 2013

Foreclosed borrowers may receive payments

On March 18, 2013, more than 4.2 million people were sent notices about payments they will receive as a result of an agreement between federal banking regulators and 13 mortgage servicers. The payments range from $300 to $125,000 each.

The settlement includes eligible borrowers whose mortgages were serviced by Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. In January 2013, these 13 mortgage servicing companies reached an agreement in principle with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to pay more than $9.3 billion in cash payments and other assistance to help borrowers.

The settlement concluded the Independent Foreclosure Review for these 13 servicers and will result in $3.6 billion in cash payments to nearly 4.2 million eligible borrowers and $5.7 billion in additional assistance.

A payment agent will be appointed to administer payments to borrowers on behalf of the servicers. Borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment. In addition, the servicers' internal complaint process will remain available to borrowers.

For borrowers with mortgage loans with the following servicers: EverBank/EverHome Mortgage Company, Financial Freedom (OneWest), GMAC Mortgage, and IndyMac Mortgage Services (OneWest), the Independent Foreclosure Review process continues.

Watch out for scams. Borrowers who have questions about their eligibility or contact information can call the toll-free Independent Foreclosure Review number at 1-888-952-9105.

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