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
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
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
More information about the mortgage settlement is available at
Further information about the Office of Mortgage Settlement Oversight is
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.