NATIONAL MORTGAGE SETTLEMENT SUMMARY

 

Payments to be made pursuant to the Consent Judgments:

 

 

 

Cash Paid Out

Credited Value of Consumer Relief to be Provided to Borrowers by Servicers

 

 

Disposition of DPSA funds

 

Dollar Amount

Servicer

$ Pd Into DPSA1

Loan Mods2

Refinancings

 

Cash to foreclosed borrowers5

1,489,813,925

Ally/GMAC

$109,628,425

$185,000,0003

$15,000,000

 

NAAG6

15,000,000

Bank of America

2,382,415,075

7,626,200,0004

948,000,000

 

Exec Cmte + Ameriquest7

10,000,000

Citibank

413,041,577

1,411,000,000

378,000,000

 

CSBS8

65,000,000

JPMorgan Chase

1,121,188,661

3,675,400,000

537,000,000

Federal agencies & settlements

911,777.917

Wells Fargo

1,005,233,716

3,434,000,000

903,000,000

 

All states + D.C. [Exhibit B-1]

2,539,915,614

Total

5,031,507,4549

16,331,600,000

2,781,000,000

 

Total

5,031,507,4569

 

1 DPSA = Direct Payment Settlement Amount, to be paid into an escrow account

2 Includes: loan modifications (firsts and juniors), cash for keys/relocation, short sales, deficiency waivers, forbearance for unemployed borrowers, anti-blight provisions,

   servicemember benefits

3 Ally/GMAC’s Exhibit I provides for $250,000,000 in additional funds/credits for this category

4 Bank of America’s Exhibit I provides for $850,000,000 in additional funds/credits for 1st lien forgiveness

5 Funds for owner-occupants who lost homes in foreclosure from 1-1-08 to 12-31-11 (will average $1,500-2,000 each) – [source: paragraph 2 of Exhibit B]

6 NAAG = National Association of Attorneys General [source: paragraph 2 of Exhibit B]

7 Reimbursement for costs of investigation and settlement negotiations incurred by the Executive Committee of the multi-state AG group and Ameriquest Financial Services

  Fund [source: paragraph 2 of Exhibit B]

8 CSBS = Conference of State Bank Supervisors [source: paragraph 2 of Exhibit B]

9 The total dollar amount to be distributed from the DPSA exceeds the amount paid into it by $2.00, which presumably will be covered by earned interest.

Note: Interest earned on undistributed amounts in the DPSA will fund the Monitoring Committee

 

Content of the Consent Judgments:

 

Exhibit A: Settlement Term Sheet

Exhibit E: Enforcement Terms [& Compliance Metrics]

I

Foreclosure & Bankruptcy Information & Documentation [Requirements]

Exhibit F: Federal Release

II

Third-Party Provider Oversight

Exhibit G: State Release

III

Bankruptcy

Exhibit H: USDOJ Servicemembers Civil Relief Act Settlement Provisions

IV

Loss Mitigation

Exhibit I (included in Ally/GMAC and B/A consent judgments only):

V

Protections for Military Personnel

A. The settlement will remain operational for 3-1/2 years.

B. It may take six to nine months to begin implementing the relief programs.

C. General Enforcement mechanisms:

    1. Monitoring Committee, consisting of representatives of AG, state & federal

        agencies monitor servicers’ compliance.

    2. The Monitor, Joseph A. Smith Jr, determines whether servicer is in compliance

        with settlement.

    3. Penalties of up to $1 million per violation ($5 million if repeated) could be

        assessed.

VI

Restrictions on Servicing Fees

VII

Force-Placed Insurance

VIII

General Servicer Duties & Prohibitions

IX

General Provisions, Definitions, and Implementation

Exhibit B: Distribution of Funds

Exhibit C: Borrower Payment Amount [to already foreclosed borrowers]

Exhibit D: Consumer Relief Requirements [loan mods, short sales, refis, & penalties for under- or non-performance]

© Norma Hammes 2012