July 2, 2014
Attorney General Kane: More Pa. consumers eligible for mortgage settlement money
HARRISBURG - Attorney General Kathleen G. Kane announced two updates to her office's efforts to hold mortgage companies accountable for their allegedly unlawful servicing practices, which contributed to the national foreclosure crisis and led consumers nationwide to lose their homes.
In December 2013, Pennsylvania and other states reached a $2.1 billion settlement with Ocwen Financial Corporation/Ocwen Loan Servicing LLC, along with two companies that Ocwen had acquired: Homeward Residential Holdings (previously known as American Home Mortgage Servicing or AHMSI) and Litton Loan Servicing.
As part of that settlement, $125 million will go to borrowers nationwide who lost their homes to foreclosure between Jan. 1, 2009, and Dec. 31, 2012. The Office of Attorney General announced today that more than 4,000 notices and claim forms were sent last week to eligible Pennsylvania borrowers with information on how to submit a claim. The exact amount of the payment depends on the number of claim forms submitted. The deadline for submitting a claim is Sept. 15, 2014.
Borrowers seeking further information about the Ocwen settlement, or who wish to submit a claim form online, should visit www.nationalmortgagesettlement.com, or call 1-866-783-5382. This toll-free hotline has an informational message available 24 hours a day, and representatives available daily from 8:00 a.m. to 8:00 p.m. EDT. Documents and hotline information are available in both English and Spanish.
Attorney General Kane also announced that on June 17, 2014, Pennsylvania, along with 48 other states and the District of Columbia joined federal authorities in reaching a $550 million settlement with SunTrust Mortgage, Inc. That settlement awaits approval by the U.S. District Court for the District of Columbia. If approved, 340 Pennsylvania borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2013, would be eligible for cash payments. Further information about the claim process for those borrowers will be announced upon approval of the settlement. Borrowers with questions about this settlement can contact SunTrust by phone at 1-800-634-7928, or by email through the Support page at www.SunTrustMortgage.com.
Both the Ocwen and SunTrust settlements follow the 2012 National Mortgage Settlement, in which Pennsylvania, along with 48 other states, the District of Columbia, and federal authorities reached settlements with the five largest mortgage servicing banks in the country, including Ally Financial/GMAC Mortgage, Bank of America, Citi, JP Morgan Chase, and Wells Fargo. The seven settlements to-date include important new servicing standards designed to address the most common servicing problems encountered by homeowners and subject the servicing companies to monitoring for compliance.
Any consumer with a complaint about their mortgage can contact the Bureau of Consumer Protection at 1-800-441-2555 or visit www.attorneygeneral.gov.
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