The National Mortgage Servicing Settlement that was reached in February has now been finalized by a court order. The Settlement provides direct relief and new protections for Washington consumers.
Washington’s share of the record $25 billion dollar settlement over alleged widespread mortgage fraud is about $648 million, to be used in a few different ways.
Here are the highlights of WA’s settlement share:
-$483 million will go to loan modifications, including principal reduction, for borrowers who are at risk of default.
-$24 million is set aside for restitution payments to borrowers who lost their homes to foreclosure between Jan 1, 2008 and Dec 31, 2011
-$84 million is designated for helping borrowers who are current but underwater refinance their loans.
-$45 million will go to state foreclosure relief and housing programs distributed through the AG’s office.
More information will be made available as settlement programs are implemented, and consumers may need to wait before seeing any direct benefits from the settlement. The mortgage servicers are required to complete 75% of their consumer relief obligations within two years and 100% within three years.
Borrowers who are currently behind on their monthly mortgage payment, or may soon experience financial trouble, are urged to call their mortgage servicer for more information.
Contact our office to set up a time to talk with Lynn about the options available to you, and how this settlement might affect you!
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