Bank Settlement Paying Agent

For some reason the electronics powering this blog cut me off before I could supply the contact info for the bank settlement paying agent. So, without further delay, here it is: Rust Consulting; (888) 952-9105. As always, I wish you Good Luck.

Bank Settlements Nearing Completion

It was just announced that the five banks in the major foreclosure settlement put together last year have nearly completed their agreed upon obligations to pay out money to aggrieved homeowners and former homeowners who were foreclosed upon wrongly. A total of $50.6 Billion has been provided to homeowners and former homeowners by the five banks in last year's settlement: BofA; Chase; Wells Fargo; Citigroup and Ally Financial (former GMAC). This sum has been paid out to more than 621,700 borrowers. In fact, BofA claims it 'may' have actually exceeded its obligations under the agreement and plans to continue its outreach program to homeowners needing this assistance. The above figure is the sum of not only the aforementioned settlement, but also all other types of relief provided to borrowers by the five institutions. BofA has provided $29.2 Bn in relief to 320,000 homeowners; JP Morgan Chase claims that 126,000 customers have received $11 Bn in relief; Wells claims that 93,000 customers have received aid totaling 90% of its obligations. Ally's settlement entity, ResCap, is credited by the Comptroller of the Currency with achieving 100% of its agreed upon goal. As noted previously, if you think you are entitled to relief from the settlement or any related programs, contact the Comptroller or call the paying agent:

Fannie, Freddie Making Mods Easier

In a new move, both GSE's Fannie Mae and Freddie Mac, are moving to start a new program making loan mods easier in many cases. Already announced, the Streamlined Modification Program will provide those who qualify an easier time of it in obtaining a loan mod of their Fannie or Freddie backed loans. Originally scheduled for a July 1 start, both GSE's are now using the plan. Basically, it makes a borrower eligible if they are at least 90 days delinquent, but not more than 720 days (almost two years) past due. The loan itself has eligibility requirements as well. It must be a first lien loan that is already at least a year old, and have a loan to value ration of at least 80%. If a borrower and loan fall within these parameters, then that borrower may qualify for the mod without having to submit documentation on his/her finances or hardship situation. If he/she receives one of these streamlined mods, it initially will be made as a trial modification for an initial period of three months. As long as the borrower makes all payments on time during that initial three months, the mod will then become permanent. So, if your loan is tied to either Fannie or Freddie and you think you fit into the qualification parameters mentioned above, get in touch with the folks at Fannie or Freddie right away! The money you save could also save your home! Good Luck.

Update On Florida Foreclosure Law

Regular followers of this blog may recall the announcement that a bill was wending its way through the Florida legislature to force lenders to prove they have the appropriate loan documents allowing them to foreclose before they commence the process of foreclosing on someone's home. Well, the bill has cleared both houses of the legislature and is now on the desk of Gov. Rick Scott for signature. No info is available on whether the governor plans to sign or not, but it did pass with healthy bipartisan margins in both houses: 26-13 in the Senate and 87-26 in the House, so it is reasonable to expect enactment.

New York to Sue BofA, Wells

In a statement just released yesterday, the NY state attorney general, Eric Schneiderman, has announced plans to sue both BofA and Wells Fargo for alleged violations related to the pace of loan modifications agreed to under the February 2012 foreclosure settlement with leading lenders. The AG cited 339 service violations related to the timeline for processing loan mods. Schneiderman's office cited four areas of violation: "four servicing standards mandated under the settlement that the banks allegedly violated, one of which requires the servicer to make a loan modification decision within 30 days of receiving a complete mod application. Another requirement allows the borrower 30 days to submit missing documents or correct issues found in the loan modification application. Borrowers must also receive written acknowledgement regarding receipt of a loan modification application within three business days, and servicers must notify borrowers of all missing documents in the submitted mod application within five business days of receipt." BofA issued a response that they take these accusations seriously and will work to resolve them, while Wells had no comment at present. So, if you're in NY State and have mortgage or loan mod issues with BofA or Wells, you may want to chat with AG Schneiderman's office. Good Luck.

More Checks Are in the Mail!

Once again, a set of checks from the foreclosure settlement have been mailed out. The latest batch, 233,404 in all, hit the post office last Friday, May 3, and total $224 Million, bringing the total value of all checks sent out to date to $3.4 Billion. Individual checks in this new mailing range from $300 on the low end to $125,000 on the high end. As previously, if there are any questions on the checks from those who are to receive them, they should be directed to Rust Consulting at: 1-888-952-9105. Once again, Good Luck.