Hyattsville, MD – The just-announced settlement with the nation’s five largest mortgage servicers will help thousands of Marylanders get enhanced loan modifications and require comprehensive reform of mortgage loan servicing standards, according to Attorney General Douglas Gansler.
The landmark agreement – the largest of its kind in Maryland history – is between the Maryland Office of the Attorney General, the Department of Labor, Licensing, and Regulation’s Office of the Commissioner of Financial Regulation, the federal government, and the nation’s five largest mortgage servicers, Wells Fargo, Bank of America, Citi, JP Morgan Chase, and Ally Bank/GMAC.
The settlement money will be used for:
- Individual payments to borrowers who were victims of these banks’ unfair servicing practices and were foreclosed upon between Jan. 1, 2008 and Dec. 31, 2011;
- Loss mitigation programs, such as loan modifications (including principal reductions), forbearance plans, and short sales for homeowners with loans serviced by the five big banks who are behind on or very likely to soon fall behind on their mortgage payments due to financial circumstances;
- Refinancing for homeowners with loans owned and serviced by the five big banks who are current in their payments but who owe more than their homes are worth; and
- Housing counseling and other state-level foreclosure prevention and housing programs.