National Mortgage Settlement Frequently Asked Questions (FAQS)

In February 2012, the Attorney General obtained a broad-ranging settlement from five major banks: Ally Financial, Bank of America, Citibank, JPMorgan Chase, and Wells Fargo. The settlement created new servicing standards that remain in place until 2015; provided cash payments to many homeowners who were wrongly foreclosed upon; provided loan modification relief, short sale opportunities, and other relief to many distressed homeowners; and appointed a monitor to oversee the banks to make sure they complied with the settlement terms. In March 2014, the monitor confirmed that the five banks have satisfied their consumer relief and payment requirements under the settlement. For more information about the monitor’s role and the monitor’s report, please visit the monitor’s website at www.jasmithmonitoring.com/omso/about/.

A copy of the settlement agreement with each of the five banks can be found as follows:

Homeowners who were wrongly foreclosed upon and who were otherwise eligible for the settlement were contacted by the settlement administrator, and settlement funds have already been distributed. In March 2014, the monitor reported that the five banks have already satisfied their consumer relief obligations under the settlement. This means that the five banks are not required to provide additional loan modifications or other relief to homeowners under the terms of the settlement. However, other options may be available to you. For assistance in requesting a loan modification or other relief, you can contact a HUD-approved housing counselor. These counselors are free and do not take money. You can find a list of California agencies that provide HUD-approved counseling here at HUD Approved Housing Counseling Agencies or by calling 1-800-569-4287. Again, these counselors are free. Be wary of anyone who charges you money for these service and be sure to research someone’s reputation and business practices carefully before paying anyone for these services.

To contact your bank directly to request assistance and see what options are available to you, you can use the following toll-free numbers: Ally/GMAC: 1-800-766-4622
Bank of America/Countrywide: 1-877-488-7814
Citibank/CitiMortgage: 1-866-272-4749
JPMorgan Chase/Washington Mutual: 1-866-372-6901
Wells Fargo/Wachovia: 1-800-288-3212

The Attorney General has reached a settlement with the following five banks: Ally Financial, Bank of America, Citibank, JPMorgan Chase, and Wells Fargo. Several of these banks are also known by other names, including Countrywide (a trade name for Bank of America); Washington Mutual and EMC Mortgage (Chase); CitiMortgage (Citibank), Wachovia Wells Fargo), and GMAC (Ally Financial).

On your monthly mortgage statement, look for a contact phone number to ask who services or owns your mortgage loan. There are also tools on the Internet that may help you find this information. You may be able to learn the name of your servicer through an online database known as the MERS registry. Not all loans are included in the registry, but searching it is free. You can search for your loan’s servicer by going online to MERS Servicing Identification . You can also use the Internet to find out if your own is owned by either Fannie Mae or Freddie Mac. Most loans in the United States are owned by these two companies. Both of them provide online search tools so you can determine if Fannie Mae or Freddie Mac owns your mortgage.

You can file a complaint with the California Attorney General’s Office online, or by sending a letter to:

You can also file a complaint with the Consumer Financial Protection Bureau (CFPB), a federal agency responsible for consumer financial protection.

As part of the settlement, a cash payment was available for some Californians whose loan was owned or serviced by Bank of America, JP Morgan Chase, Wells Fargo, Citibank or GMAC and whose home was foreclosed upon between January 1, 2008 and December 31, 2011. However, please be advised that the deadline to file a claim was January 18, 2013 and claims are no longer being accepted. If you have questions, you may call the Settlement Administrator at 1-866-430-8358.

The settlement payment is not intended to compensate you for the loss of your home. You were not required to give up your legal rights to participate in this settlement, you may wish to consult a private attorney for advice about any other legal claims you may have.

Yes. The Attorney General fought hard to prevent a release of claims by individual consumers. This means that even if you got a settlement payment for a foreclosure, or if you received a loan modification or other relief under the settlement, you may still sue the banks for any legal claims you may have.

No. The Attorney General’s Office is not able to give you legal advice or any other advice on this matter. If you would like legal advice, please consult a private attorney or a legal aid attorney if you qualify. You may obtain a referral to a certified lawyer referral service by contacting the California State Bar at 1-866-442-2529 or at www.calbar.ca.gov. Click on the link for “Lawyer Referral Services” on the bottom left hand corner of the page. You can also download the California State Bar Association’s booklet about how to find the right attorney. If you cannot afford a private attorney and qualify for legal aid, you may consider contacting your local legal aid office. For a referral, visit www.lsc.gov and click on the Find Legal Assistance tab.

Yes. In addition to the settlement’s servicing standards, which are in effect for three and one-half years, the banks must also comply with the California Homeowner Bill of Rights (HBOR) , which went into effect in January 2013. They must also comply with the Consumer Financial Protection Bureau’s (CFPB’s) mortgage servicing rules, which went into effect in January 2014. For more information about the CFPB’s mortgage servicing rules .

Yes. You can file a complaint with the California Attorney General’s Office online , or by sending a letter to:

You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) , a federal agency responsible for consumer financial protection.

The Attorney General has obtained a broad-ranging settlement from five major banks. If you are a homeowner struggling to pay your mortgage or facing foreclosure, or if you have already lost your home to foreclosure, it is possible that this settlement could help you. Not every homeowner will qualify for relief under this settlement. Those who do qualify may receive various forms of relief depending on their circumstances. Available forms of relief include: payments to borrowers who were wrongly foreclosed upon; reduction of unpaid principal balances; refinancing for borrowers whose homes are worth less than the money they owe; and the opportunity for short sales and other relocation assistance.

No. It is a legal settlement between banks and the California Attorney General. The settlement is intended to provide relief to Californians who are struggling to pay their mortgages or who have lost their homes to foreclosure.

Please see links to the side under "National Settlement Documents".

Please note, the settlement is not considered final until it has been approved by the U.S. District Court for the District of Columbia. The date the settlement will be approved by a U.S. District Court judge is not known at this time.

You may be eligible for relief. In order to qualify, you must have a mortgage that is owned or serviced by a settling bank. If your loan is owned by Fannie Mae or Freddie Mac, different considerations may apply. (See below.) The “servicer” and the “owner” of your mortgage may be the same company or they may be two different companies. It is important that you know the names of both the servicer of your loan and the owner of your loan so that you can determine if you are eligible.

The “owner” of your mortgage receives the payments that you make. The “servicer” collects your payments, sends you monthly statements, answers your questions and otherwise communicates with you about your loan. The following explanation may help clarify the distinction between owner and servicer. Generally, a bank lends you money to buy your home. Once you have started making payments, it may sell your mortgage loan to an outside investor. In such a case, the bank may continue to collect your monthly payments and communicate with you about your mortgage. However, the investor has a right to the proceeds of the loan. In this arrangement, your bank is now the “servicer” of your loan, while the investor “owns” the loan. Over the life of your loan, other banks or financial institutions may become the servicer for your loan and the loan can be sold to other investors.

If you have a mortgage that is either owned or serviced by a settling bank, you may be eligible for relief under the settlement and should contact your servicer to determine what options are available in your case.

On your monthly mortgage statement, look for a contact phone number to ask who services or owns your mortgage loan. There are also tools on the Internet that may help you to find this information. You may be able to learn the name of your servicer through an online database known as the MERS registry. Not all loans are included in the registry, but searching it is free. You can search for your loan’s servicer by going online to MERS® Servicer Identification. You can also use the Internet to find out if your loan is owned by either Fannie Mae or Freddie Mac. Most loans in the United States are owned by these two companies. Both of them provide online search tools so you can determine if Fannie Mae or Freddie Mac owns your mortgage.

The settlement provides two main types of loan modifications for qualifying homeowners: principal write-downs and refinancing in order to make your monthly mortgage payment more affordable. In the case of a principal write-down, the bank reduces the unpaid principal balance of your loan so that your monthly payments are reduced to an affordable level. In the case of a refinance, the length of the loan may change and/or the interest rate will be reduced so that your monthly payments are reduced to an affordable level. If a principal write-down or refinancing arrangement will not be enough to make your mortgage affordable, there are other options available under the settlement, including help with short sales and relocation assistance. You should contact your servicer with questions about which relief you are eligible for and what options best fit your goals.

To qualify for a refinance under the settlement, your loan must be serviced and owned by one of the settling banks. You must also be current on your mortgage and have no delinquencies within the past 12 months. You must also be underwater and your interest rate must be at least 5.25 percent. Unfortunately, the following types of loans are excluded from the refinance program: FHA Loans, VA Loans, and loans on manufactured homes. In addition, if you have been in bankruptcy in the last 24 months or have been in foreclosure in the last 24 months, you are ineligible.

No. Your loan must have a current interest rate of at least 5.25 % or PMMS + 100 basis points, whichever is greater.(PMMS is Freddie Mac's weekly Primary Mortgage Market Survey, an average of mortgage rates that are offered by about 125 lenders)

In order to qualify for a principal write-down, your loan must be otherwise eligible and the value of your unpaid principal balance must be higher than the current market value of your home. You also must have either missed a mortgage payment or be imminently at risk of doing so.

Yes. If you are having trouble paying your mortgage, you should contact your servicer to determine if you are eligible for a loan modification.

Yes. If you are having trouble paying your mortgage, you should contact your servicer to determine if you are eligible for a loan modification.

The settlement does not mandate that the settling banks stop all foreclosures. As part of the settlement, here are new servicing standards that create important limitations on what foreclosure actions the bank can take while you are pursuing a loan modification.

You can file a complaint with the California Attorney General’s Office by sending a letter with copies of any supporting documentation to the:

Office of the Attorney General
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550

or you can file a complaint online.

Yes. As part of the settlement, the banks may write down balances or provide principal reductions to facilitate a short sale of your home. Contact your servicer for additional information.

Yes. You may qualify for a deed in lieu of foreclosure or participate in programs such as cash for keys, in which the bank will provide a small transitional payment in exchange for you turning over your house in good order without requiring a legal eviction process.

You probably do not qualify for relief under the settlement unless the investor for the loan or the owner of the loan agrees to allow it to be modified. However, other options may be available to you. We suggest that you call HUD at (800) 569-4287 to speak with a housing counselor regarding your circumstances.

If the mortgage was sold to a bank participating in the settlement, you may be eligible. Individual eligibility is very dependant on the borrower’s particular circumstances (e.g., employment status, income, previous failed modifications, affordability even with reductions, loan to value, etc.).

If one of the settling banks services a loan for a private investor and the private investor for that particular loan has agreed to allow it to be modified, then you may be eligible.

If the mortgage was sold to a servicer who is not participating in the settlement, and the owner of the loan has not agreed to allow it to be modified, then you do not qualify for relief under the settlement. However, other options may be available to you. We suggest that you call HUD at (800) 569-4287 to speak with a housing counselor.

This settlement is not intended to fix every issue in the home mortgage industry and is directed at a specific subset. Homeowners who are current on their payments and also underwater (owe more than value of home) may be eligible to apply for a refinance loan or other relief under the settlement in certain circumstances, if the loan is actually owned—not just serviced—by one of the settling parties.

The prior settlement related solely to pay-option ARM loans originated by Wachovia and World Savings. The new agreement is broader and relates to a broader class of loans. A consumer might qualify for relief under both settlement, but it will depend on his or her specific circumstances. For additional information about the prior settlement, please click here.

The prior settlement related to subprime and pay-option mortgage loans with an initial due date between January 1, 2004 and December 31, 2007 originated with Countrywide, which was purchased by Bank of America. The new agreement is broader and relates to a broader class of loans. A consumer might qualify for relief under both settlements, but it will depend on his or her specific circumstances.

Yes.

Information is available from the California Franchise Tax Boardand the Internal Revenue Service. In addition, you should consult with a tax advisor or attorney about your particular situation.

Look for any records from when you purchased your home. In those records, you should look for the name of the bank that you borrowed money from for the purchase of your home. If you cannot find those records, you should visit your county recorder’s office and ask to see what banks or financial services companies recorded deeds of trust against your property or which banks or companies recorded a notice of default or notice of sale. Once you have the names of these banks or companies, call their information number and ask them who the servicer or owner of your mortgage was.

Yes. As part of the settlement, the banks may write down balances on so-called deficiency judgments. If you have such a judgment, you should contact your servicer.

No. Only borrowers who lost their primary residence through foreclosure will be eligible for settlement payments

In general, borrowers will only receive one payment.

We recommend that you contact a HUD-Approved Housing Counselor. Find a list of California agencies providing counseling. You can also get connected with a counselor by calling 1-800-569-4287. Importantly, such counselors are free and do not take money. Be wary of anyone who offers you these services for a fee and be sure to fully examine their reputation and business practices before paying any money.

Nothing in the settlement changes your existing financial relationship with the settling banks. It in no way relieves you of any obligations you may have to the settling banks.

The California State Bar Association has information about attorney referrals at its website. Click on the link for “Lawyer Referral Services” on the bottom left hand corner of the page. You can download the California State Bar Association’s booklet about how to find the right attorney at the following website: http://www.calbar.ca.gov/Public/Pamphlets/HiringaLawyer.aspx

No. However, you may wish to contact a HUD-Approved Housing Counselor. Find a list of California agencies providing counseling. You can also get connected with a counselor by calling 1-800-569-4287. Importantly, such counselors are free and do not take money. Be wary of anyone who offers you these services for a fee and be sure to fully examine their reputation and business practices before paying any money.

Yes. Please file a complaint online. Spanish language complaint forms, pdf are also available.

No. Settlement payments are limited to homeowners who lost their home to foreclosure and meet all other eligibility requirements

The federal agencies in control of those loans have refused to do principal reductions. Complaints may be directed to: Edward DeMarco, Acting Director, Federal Housing Finance Agency, e-mail: Director@FHFA.gov

The California Department of Veterans Affairs currently does not have the legal authority to refinance homeowners who are in difficult situations, and is exploring possible legislative solutions. For questions pertaining to a CalVet mortgage, please contact the CalVet Customer Services Unit at (800) 952- 5626 (toll free) or (916) 503-8362 or by email at loanserv@cdva.ca.gov

Contact the California Housing Finance Agency at (800) 669-1079 or by email at servicing@calhfa.ca.gov