Friday, September 7, 2012
More than 300 Kansas homeowners received more than $8 million in mortgage assistance during the first four months the national mortgage settlement was in effect.
A first report on implementation of the national settlement, published last week, shows 315 Kansas homeowners received a total of $8.4 million in mortgage assistance under the settlement between March 1 and June 30. The average relief per homeowner was $26,792.
The assistance, which was provided directly by the mortgage servicers as required by the settlement, has come in the form of lien modifications and extinguishments, short sales, refinancing and other types of adjustments in mortgage obligations of affected homeowners.
“Kansas homeowners who were harmed by the conduct of these national mortgage servicers are beginning to see the concrete benefits of our enforcement action and settlement,” Attorney General Derek Schmidt said. “More relief is to come, and I encourage Kansans who qualify for assistance to pursue it.”
Schmidt said homeowners who are entitled to cash payments under the settlement will soon receive a postcard notifying them how to file a claim as well as a follow-up packet of information. Questions about eligibility should be directed to the settlement administrator by calling 1-866-430-8358.
In March, Kansas, 48 other states, the District of Columbia, and the federal government entered into a landmark settlement with the nation’s five largest mortgage servicers to resolve the states’ allegations of illegal conduct in the mortgage servicing market. Under terms of the settlement, the five servicers are providing mortgage relief to qualifying homeowners.
The five mortgage servicers who settled are Ally Financial (formerly GMAC), Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Further investigation into illegal conduct in the mortgage market during the national financial crisis is ongoing.