Forms to claim a piece of a nationwide settlement over mortgage abuses will be mailed eligible Oregon borrowers over the coming weeks, Oregon Attorney General Ellen Rosenblum said Monday. Under the settlement, foreclosed borrowers are eligible for a payment if their homes was seized from January 2008 to December 2011 and if their loan was serviced by one of the five largest servicers: Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.
That settlement between the five lenders, the federal government and 49 state attorneys general set aside $1.5 billion for direct payments to about 2 million qualifying borrowers. The settlement resulted from widespread mortgage abuses and sloppy handling of paperwork at the height of the foreclosure crisis, and in addition to the payments, it also introduced new mortgage servicing standards and requires banks to steer more homeowners toward foreclosure avoidance programs.
The amount for each borrower will vary depending on how many can be located and choose to opt in, but the state estimates the payment to Oregon borrowers would be at least $840.
The forms will be mailed by Oct. 12 and must be returned by Jan. 28 by mail or by filling out a form at nationalmortgagesettlement.com. Payment checks should be sent by mid-2013. Borrowers with questions about the form can call the settlement administrator at 866-430-8358.
By Elliot Njus, The Oregonian September 24, 2012