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Indiana AG reports on status of national mortgage settlement payments

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Banks participating in the landmark National Mortgage Settlement reported about $71.3 million has been extended to more than 1,900 Indiana borrowers through refinancing or home loan modifications, the Indiana Attorney General’s Office reported on Thursday.

This relief became available in February after 49 states and Indiana Attorney General Greg Zoeller joined the federal government’s settlement with Ally, Bank of America, Citi, JPMorgan Chase, and Wells Fargo.

According to the report compiled by the Office of Mortgage Settlement Oversight, about $13.87 million in refinancing was given to 450 current Indiana borrowers. About $57.4 million was extended to 1,461 borrowers for loss mitigation relief which could have included help through short sales, loan modifications, deeds in lieu of foreclosure, or principal reductions.

“Today’s report helps outline the steps the banks have taken to implement the terms of the settlement and gives insight into the amount of relief Hoosier consumers are receiving,” Zoeller said. “I look forward to reading the Office of Mortgage Settlement’s review of the banks’ reported consumer relief activities.”

In total, the banks disclosed that they have extended more than $26.11 billion in gross relief to more than 300,000 borrowers nationwide, or roughly $84,385 per homeowner. The monitor of the National Mortgage Settlement has not yet confirmed or approved the banks’ report.

The full report can be found at https://www.mortgageoversight.com/wp-content/uploads/2012/1 1/Continued-Progress_11.19.12.pdf and the monitor’s state-by-state data map is available at https://www.mortgageoversight.com/map/

The report discloses that the banks have completed $21.92 billion in consumer relief to borrowers between March 1 and Sept. 30 and have an additional $4.2 billion still in active trial modifications. Borrowers have received about $6.34 billion in the form of either first or second lien principal relief. According to the settlement monitor, this information represents gross dollar amounts and, because in many cases relief under the settlement is not credited dollar-for-dollar, cannot be used to evaluate progress toward the banks’ $20 billion obligation.

Indiana’s homeowners who were foreclosed upon and experienced a servicer error between Jan. 1, 2008 and Dec. 31, 2011 will receive a total of $31.4 million in cash payments. In September, claim packets were mailed to eligible borrowers. Consumers must complete their claim forms and return them in the envelope provided or file them online at www.nationalmortgagesettlement.com

The deadline for all claims is Jan. 18, 2013. Payment checks are expected to be mailed in mid-2013.

Consumers who believe they are eligible but did not receive a postcard or claim packet can call the settlement administrator’s hotline toll-free at (866) 430.8358. The hotline is staffed Monday through Friday from 7 a.m. to 7 p.m. Central. Borrowers who have questions or need help filing their claim can also contact the settlement administrator at the toll-free number or send questions by email to administrator@nationalmortgagesettlement.com

More information about the mortgage settlement is available at www.nationalmortgagesettlement.com

Further information about the Office of Mortgage Settlement Oversight is available at www.mortgageoversight.com

Zoeller recently joined a national effort by 41 other attorneys general to urge Congress to extend tax relief for consumers who have mortgage debt canceled or forgiven because of financial hardship or a decline in housing values. The federal Mortgage Debt Relief Act which allows for this exclusion has been in effect since 2007 and is set to expire on Dec. 31. An extension of this deadline is included in the Family and Business Tax Cut Certainty Act of 2012 which is currently being considered by Congress.

“Congress must act or any debt relief consumers receive from the National Mortgage Settlement or another debt relief program will likely be considered taxable income,” Zoeller said.

 

Posted 11/30/2012