What the Recent Mortgage Settlement Means for Homeowners
POSTED APRIL 13, 2012 IN ay JENNIFER KING
Last week a tederal judge signed ott on a $26 billion settlement agreement
negotiated öeüveen five major banks and attorneys general in 4g states
and the District ot Columbia. The banks were originally charged with having
unlawful and untair toreclosure practices. Among the allegations.
• Lenders employed "roöo-signers" who signed off on foreclosure
affidavits attesting they'd personally reviewed toreclosure documents
without actually doing so
• Because ot roöo-signers and other shoddy practices, banks improperly
toreclosed on homes
Does the Mortgage Settlement Affect Me?
Christopher M. Adishlan
You may be covered by the national mortgage settlement it you live in any state
except Oklahoma (which reached a separate settlement with banks in February)
and nave a mortgage with one ot five big banks.
"Although its described as a $26 billion settlement, the lenders involved will only
nave to pay about $5 billion (roughly 20 percent) in nard cash, with the
remainder paid' in the torm ot adjustments to existing mortgages that haven't
been toreclosed upon," says California real estate lawyer Christopher M.
Adishian ottne Adishian Law Group, P_C_ "Eligible mortgages must nave been
originated and held by Bank ot America, Wells Fargo, JPMorgan Chase,
Citigroup or Ally Financial, and the settlement specifically excludes loans held by
Fannie Mae and Freddie Mac or insured by the Federal Housing Administration.
"It you were attected by the toreclosure but you're not covered by this settlement, expect that the states
may use this as a template' settlement to pursue with other lenders and pools ot mortgages not
covered by this settlement."
adishianlaw.com