Minnesota Attorney General's Office
1400 Bremer Tower
445 Minnesota Street
St. Paul, MN 55101
M - F 8 am - 5 pm
Housing and Mortgage Assistance
INFORMATION ABOUT THE NATIONAL MORTGAGE SETTLEMENT PAYMENTS TO BORROWERS
The national mortgage settlement is a settlement between the federal government, the Minnesota Attorney General and other states, and the nation’s five largest banks: Wells Fargo, Bank of America, Citi, Chase, and GMAC/Ally.
Minnesota borrowers who lost their homes to foreclosure between January 1, 2008 and December 31, 2011 and whose mortgages were serviced by one of these five banks had until mid-January, 2013 to request a payment under the national mortgage settlement fund, although the settlement administrator is continuing to accept claims, which it says may or may not be paid.
The national mortgage settlement is administered by a National Settlement Administrator named Rust Consulting, based in Faribault, Minnesota. Rust Consulting says it mailed checks to eligible claimants between June 10 and June 17, 2013.
If you wish to contact the National Settlement Administrator, you may call it at (866)430-8358 (Monday through Friday, 7 a.m. to 7 p.m.), or write to it as follows: “National Mortgage Settlement Administrator” at P.O. Box 8044, Faribault, MN 55021-9443.
The following are answers to other questions about the national mortgage settlement:
- What is my eligibility for payment under the national mortgage settlement?
In general, borrowers who lost their homes to foreclosure between January 1, 2008 and December 31, 2011 and whose mortgages were serviced by Wells Fargo, Bank of America, Citi, Chase, and GMAC/Ally (and who meet certain other eligibility requirements) are eligible to participate if:
- They were unable to make payments on their loan due to financial hardship; or
- They attempted to get a loan modification or other foreclosure alternative, but their mortgage servicer mishandled their application or pursued foreclosure on their loan while their application was pending (or even after it was approved); or
- Their mortgage servicer or their agents made errors in the foreclosure process (or leading up to the foreclosure process)
Eligible borrowers should have received a claim form, which they were required to submit to the National Settlement Administrator by mid-January, 2013. There are some potentially eligible borrowers who will receive a claim form in July 2013. Please see question 7 for additional information.
- How much will I be paid?
The National Settlement Administrator reports that eligible claimants will receive approximately $1,480. This amount is on a per loan basis, so if there were multiple borrowers on your loan that no longer reside at the same address, you may receive a check in a lower amount.
- I didn’t receive a payment. What should I do?
You should call the National Settlement Administrator, Rust Consulting, to find out the status of your claim and why you may not have received a payment. We are told by Rust that for various reasons, some payments to eligible claimants were not mailed.
- What should I do if I have questions?
If you have questions, you may call the National Settlement Administrator at 1-866-430-8358, Monday through Friday, 7 a.m. to 7 p.m.
- How can I update my address?
If your address has changed since you submitted your claim form and you are waiting for a check or a determination on your claim, you should call the National Settlement Administrator right away at 1-866-430-8358 to provide your new address.
- I already received a check from Rust Consulting, under the Independent Foreclosure Review, can I still cash the check I received under the National Mortgage Settlement?
Yes. There is a separate, additional settlement between a number of banks and the Office of the Comptroller of the Currency and the Federal Reserve. Rust Consulting is also the Settlement Administrator for that settlement, and some payments have recently gone out under that settlement. Please know that this settlement is not related to the National Mortgage Settlement, and if you are eligible for a payment (and filed a claim) under the National Mortgage Settlement, you may cash both checks. If you are unhappy with the settlement between the bank that foreclosed on your home and the OCC or Federal Reserve, you should let them know as follows:
- Why did I just receive a claim form to make a claim in the National Mortgage Settlement?
Chase and Citi identified an additional 31,000 additional borrowers who they neglected to include in their initial list of potentially eligible borrowers to the National Settlement Administrator. Because Chase and Citi identified their mistake late in the claims process, the National Settlement Administrator held back funds to pay those potentially eligible claimants. We understand the national settlement administrator will use any leftover funds to pay late filed claims. If you recently received a claim form and have questions, we encourage you to call the National Settlement Administrator, Rust Consulting, at 1 866 430 8358, or visit www.nationalmortgagesettlement.com for more information. Of course, you’re always welcome to contact our Office with any questions: 651 296 3353 or 1 800 657 3787.
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