2012 News Releases

AG Schmidt: Mortgage settlement has provided $24.4 million for Kansas homeowners

Release Date: Nov 19, 2012

TOPEKA – (November 19, 2012) – More than 700 Kansas homeowners received more than $24 million in mortgage assistance during the first seven months the national mortgage settlement was in effect, Kansas Attorney General Derek Schmidt announced today.

The latest report on implementation of the national settlement, published today, shows 734 Kansas homeowners received a total of $24.4 million in mortgage assistance under the settlement between March 1 and September 30. The average relief per homeowner was $33,270.

The $24.4 million in assistance, which was provided directly by the mortgage servicers to the borrowers, has come in the form of lien modifications and extinguishments, short sales, refinancing and other types of adjustments in mortgage obligations of affected homeowners. Of the $24.4 million in relief provided to date, $16 million came in the second quarter the settlement has been in effect and is in addition to the $8.4 million in first-quarter assistance that was previously reported.

“Many Kansas homeowners were hurt by the misconduct of these national mortgage servicers,” Schmidt said. “This latest report shows that our enforcement action is providing the help that many Kansas homeowners desperately need. I encourage Kansans who qualify for assistance to apply for it.”

Schmidt said homeowners who are entitled to cash payments under the settlement should have received a postcard notifying them how to file a claim as well as a follow-up packet of information. Questions about eligibility should be directed to the settlement administrator by calling 1-866-430-8358 or by visiting www.nationalmortgagesettlement.com.

In March, Kansas, 48 other states, the District of Columbia, and the federal government entered into a landmark settlement with the nation’s five largest mortgage servicers to resolve the states’ allegations of illegal conduct in the mortgage servicing market. Under terms of the settlement, the five servicers are providing mortgage relief to qualifying homeowners.

The five mortgage servicers who settled are Ally Financial (formerly GMAC), Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Further investigation into illegal conduct in the mortgage market during the national financial crisis is ongoing.

Kansans seeking more information can contact the attorney general’s Consumer Protection Division at 1-800-432-2310 or www.ag.ks.gov.

Media & Resources

Menu

Search News Releases

NOTE: This will perform a Google search and display the results in a new tab/window.

News Release Archive

News releases issued prior to 2011 are available through an archive hosted by the Kansas State Library.