PIERRE, S.D - Attorney General Marty Jackley announced today that borrowers who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive a check this month for approximately $1,480. Mortgage servicing abuse payments totaled $1,340,241.63 for South Dakota.
Eligible borrowers had their mortgage serviced by one of the settlement’s five participating mortgage servicers, lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim form. The participating servicers include Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, Wells Fargo.
“Inappropriate conduct by out-of-state financial institutions has harmed many South Dakotans. This Mortgage Settlement has brought almost $8 million in relief to South Dakota and reasonable mortgage services standards to prevent future abuses to homeowners,” said Jackley.
In February of 2012, South Dakota joined with other State Attorneys General in reaching a $25 billion federal-state agreement with the nation’s five largest mortgages service providers over nationwide mortgage practices. The proposed agreement provided an estimated $7,790,984 in direct relief to South Dakota homeowners and addresses future mortgage loan service practices.
A relatively small number of borrowers will not receive a check in the initial mailing or will receive a split payment.• Some borrowers will receive a check for less than the approximate $1,480 payment in situations where borrowers are divorced or separated and no longer live at the same address. The full per-loan amount will be paid on these loans, but the payment will be evenly split between the borrowers.• A small number of borrowers who submitted a claim form but do not have a valid Social Security number on file will be delayed in receiving their payments while tax-related issues are addressed.• Two servicers recently provided information on an additional 31,000 borrowers, and thus they could not be included in this distribution. Later this summer, these consumers will receive a notice and will have the opportunity to submit a payment application.
Every borrower who filed a claim will receive a letter regarding their outcome. Borrowers with questions about their National Mortgage Settlement payment should call settlement administrator Rust Consulting at 1-866-430-8358.