Fixing the foreclosure crisis is one of the most important things we can do to restore a healthy economy. To meet that goal, the Attorney General’s Office has entered into a $25 billion nationwide state-federal settlement over unlawful foreclosures, including robo-signing of documents. This agreement will bring an estimated $318 million dollars in assistance to Massachusetts borrowers.
The agreement will settle many claims made as part of AG Coakley’s lawsuit against the five banks filed in 2011. In Massachusetts, this agreement provides for immediate relief and continued enforcement. The banks will provide an immediate infusion of millions of dollars in relief for struggling homeowners. It also allows the Attorney General’s Office to continue to pursue claims against the banks for initiating illegal foreclosures in our state and corrupting our land court system.
Through this national state-federal agreement, five major lenders are expected to provide approximately $14.6 million in cash payments to Massachusetts borrowers, $257 million worth of mortgage relief, and a direct payment of more than $44.5 million to the Commonwealth that will be used to assist homeowners. The agreement settles allegations of widespread use of fraudulent documents by Bank of America, Wells Fargo, JP Morgan Chase, Citi, and GMAC/Ally.
Massachusetts estimated total share of the settlement is $317,915,272:
- Massachusetts borrowers will receive an estimated $224,000,819 in benefits from loan term modifications and other direct relief.
- Massachusetts borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and suffered servicing abuse will qualify for approximately $14,625,790 in cash payments to borrowers.
- The value of refinanced loans to Massachusetts underwater borrowers is estimated to be an estimated $32,729,601
Information for Consumers:
Consumers seeking loan modifications and refinancing options:
The first step consumers should take is to contact their mortgage servicer to obtain more information about specific loan modification programs and whether they qualify under terms of the settlement:
Bank of America: 1-877-488-7814
Wells Fargo: 1-800-288-3212
Consumers who have issues or concerns dealing with their mortgage servicer can submit a complaint online or call the Attorney General’s Consumer Hotline at (617) 727-8400.
The settlement agreement includes substantial financial compensation to homeowners who are servicemembers and establishes new protections for servicemembers in the future.
The Servicemembers Civil Relief Act, SCRA, prohibits foreclosures on servicemembers without court orders on mortgages that were originated before military service began. The settlement extends this protection to all servicemembers, regardless of when their mortgage was secured, if they were receiving Hostile Fire/Imminent Danger Pay and were stationed away from their home within nine months of the foreclosure.
Servicemembers and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance office. Additional information about the Justice Department’s enforcement of the SCRA and the other laws protecting servicemembers is available at www.servicemembers.gov.
More information can be found on the state-federal settlement at the websites below:
Consumers who may have additional questions about the settlement, have issues or concerns dealing with their mortgage servicer or other concerns can submit a complaint online, or call the Attorney General’s Office at (617) 727-8400.
More detailed information about the mortgage settlement is available here .
Loans owned by Fannie Mae or Freddie Mac are not impacted by this settlement. You may visit the following websites to learn if your loan is owned by either Fannie Mae or Freddie Mac:
Since 2007, AG Coakley has been a national leader in addressing the foreclosure crisis by holding banks and investment giants accountable for their role in the economic downturn. Her office has already recovered more than $600 million in relief for Massachusetts homeowners and investors. AG Coakley’s Office has ongoing investigations into the foreclosure crisis and will continue additional efforts to stabilize the housing market in Massachusetts.
More information about Attorney General Coakley's initiative to address the foreclosure crisis is available.