Monday, March 19, 2012

PA Joins Federal-State Settlement of Mortgage Foreclosure Abuse

On February 9, Pennsylvania Attorney General Linda Kelly announced that Pennsylvania joined a federal-state agreement with the nation's five largest mortgage servicers over abuses involving foreclosure and mortgage servicing.

"This settlement provides an estimated $266 million in assistance to Pennsylvania, including principal reductions for consumers struggling to avoid foreclosure, refinancing relief for homeowners who are 'underwater' - owing more than their homes are now worth - and payments to borrowers who lost their homes," Kelly said.

Kelly said the proposed agreement with Ally, Bank of America, Citi, JPMorgan Chase and Wells Fargo addresses concerns by state and federal investigators that loan servicers signed foreclosure-related documents without really knowing whether the facts they contained were correct.

Kelly said that many of the borrowers impacted by this settlement will be contacted directly by their bank or mortgage servicing company, while others may receive official notices from the Attorney General's Office or the national settlement administrator.

She encouraged consumers to closely monitor the Attorney General's website and the national settlement site for additional updates to help verify eligibility, contact the appropriate financial institution or to report problems

Online Sites

www.nationalmortgagesettlement.com

(The national website with information for consumers who may be impacted by the settlement)

www.attorneygeneral.gov

(The website for the Pennsylvania Attorney General)