FOR IMMEDIATE RELEASE
NEWS ADVISORY
June 6, 2013
For More Information, contact:
Luther Strange
Joy Patterson (334) 242-7491
Alabama Attorney General
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AG STRANGE RECOVERS $21.8 MILLION FOR ALABAMA
CONSUMERS IN NATIONAL MORTGAGE SETTLEMENT
(MONTGOMERY) – Attorney General Luther Strange announced today that
payments totaling $21,828,276 will soon be on the way to approximately 15,000 Alabama
consumers as a result of the state’s participation in the National Mortgage Settlement.
Nationwide, the settlement administrator will mail 962,278 valid claim payments from June
10 through June 17.
Borrowers who are eligible to receive the payments had their mortgage serviced by
one of the settlement’s five participating mortgage servicers, lost their home to foreclosure
between January 1, 2008, and December 31, 2011, and submitted a valid claim form. The
participating servicers include Ally (formerly GMAC), Bank of America, Citi, JPMorgan
Chase and Wells Fargo.
“I am pleased with these results of the National Mortgage Settlement, which continues
to bring much needed relief to Alabama borrowers,” said Attorney General Strange.
In February 2012, 49 state attorneys general and the federal government
announced the historic joint state-federal National Mortgage Settlement with the country’s
five largest mortgage servicers. Preliminary data shows that, so far, the servicers have
provided more than $50 billion in direct settlement relief to borrowers nationwide.
Consumers in Alabama already have received other forms of mortgage relief as a result of
this settlement–such as refinances, short sales and partial mortgage forgiveness–totaling
about $104,814,256, with additional relief pending and expected for the future.
A relatively small number of borrowers will not receive a check in the initial mailing
or will receive a split payment, as follows:
Some borrowers will receive a check for less than the approximate $1,480 payment in
situations where borrowers are divorced or separated and no longer live at the same
address. The full per-loan amount will be paid on these loans, but the payment will be
evenly split between the borrowers.
A small number of borrowers who submitted a claim form but do not have a valid
Social Security number on file will be delayed in receiving their payments while tax-
related issues are addressed.
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501 Washington Avenue Montgomery, AL 36104 (334) 242-7300
www.ago.state.al.us Page 2 of 2
Two servicers recently provided information on an additional 31,000 borrowers, and
thus they could not be included in this distribution. Later this summer, these
consumers will receive a notice and will have the opportunity to submit a payment
application.
In Alabama the total amount of approximately $21,828,276 will be divided into 15,084 checks
that will apply toward a total of 14,707 loans.
Every borrower who filed a claim should receive a letter regarding their outcome.
Borrowers with questions about their National Mortgage Settlement payment may contact
the settlement administrator at 1-866-430-8358.
Please note that National Mortgage Settlement and Independent Foreclosure
Review Payments are separate. The Independent Foreclosure Review settlement is unrelated
and separate from the National Mortgage Settlement and does not include the same
governmental agencies. The IFR payments began in mid-April of 2013, and the Office of the
Comptroller of Currency announced that final payments will be mailed in mid-July. For
more information on the OCC Independent Foreclosure Review settlement, go to
www.OCC.gov and click on Independent Foreclosure Review.
Information about the National Mortgage Settlement is available at
www.NationalMortgageSettlement.com and at the Attorney General’s website,
www.ago.alabama.gov.
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