Q&A: Status and Affect of Billion Dollar Settlement
Many details of the $8.5 billion mortgage foreclosure settlement that federal banking regulators announced Monday have not been finalized yet. Here are some answers for borrowers.
Q: How much money is in it?
A: Ten banks and mortgage companies will pay $3.3 billion in cash to borrowers and $5.2 billion in mortgage relief to settle federal regulators’ investigations into alleged foreclosure abuses. This settlement largely replaces a 2011 settlement between the same regulators and leading home loan servicers.
Q: Who’s eligible for compensation?
A: That hasn’t changed. You’re eligible if your primary home was in some stage of foreclosure in 2009 or 2010 and your loan was handled by one of the participating servicers. Those are Bank of America, Citigroup, Wells Fargo, JPMorgan Chase, MetLife Bank, PNC, Sovereign, Sun Trust, U.S. Bank and Aurora. Others may join later.
Q: If I think I’m eligible, what should I do now?
A: Nothing. If you’re eligible, regulators say you’ll be contacted by the end of March by a company that will function like a claims administrator.
