Department of the Attorney General

Mortgage Settlement

Ocwen Settlement

Visit the Foreclosure Assistance Program

Joint State-Federal Mortgage Servicing Case
Settlement Highlights

This settlement makes wrongdoers pay, provides real financial help for homeowners, and requires mortgage servicers to treat homeowners fairly.
It’s the result of a years-long effort by state attorneys general to hold the five largest mortgage servicers accountable for their misconduct and mistreatment of homeowners.

Financial relief for homeowners

Homeowners will get at least $17 billion and likely as much as $32 billion in direct relief
This relief will help many homeowners avoid foreclosure and stay in their homes with affordable payments.
Many homeowners whose mortgages exceed the value of their homes can tap into a fund of $3 billion to refinance their mortgages.
$5 billion in additional penalties will go to the states and federal government and will be used to fund housing counselors, legal aid, and other assistance for homeowners, including cash payments for borrowers who experienced servicing abuse.

Treating homeowners fairly

Stops many past foreclosure abuses, such as robo-signing, improper documentation and lost paperwork through new mortgage servicing standards.
Requires strict oversight of foreclosure processing.
Mortgages servicers will have to evaluate homeowners for other loan mitigation options first, making foreclosures a last resort.
Restricts banks from foreclosing while the homeowner is being considered for a loan modification
Sets procedures and timelines for reviewing loan modification applications, and gives homeowners the right to appeal denials.
Creates a single point of contact for borrowers seeking information about their loans and adequate staff to handle calls.
These tough new standards will be enforced by court order and overseen by an independent monitor.

OCC Program Correcting Foreclosure Practices

Homeowners whose primary residence was part of a foreclosure action between January 1, 2009 and December 31, 2010, and whose home loan was serviced by a participating servicer, may be eligible for an Independent Foreclosure Review by the Office of the Comptroller of the Currency (OCC). This program may assist you in obtaining financial relief.

The deadline to apply is December 31, 2012.