Are you tired of hearing “Settlement Act” yet? Get used to it. It is going to take quite some time for the five major mortgage servicers to spend the $8.4 billion in relief that has been allocated to Florida homeowners. This act also addresses future mortgage loan servicing practices. It releases civil claims related to robo-signing, other foreclosure-related abuses, and loan origination misconduct on behalf of those servicers, but it also provides no release of criminal claims or of claims related to mortgage securitization.
While perusing Attorney General Pam Bondi’s website I found this quote from her, ”This settlement will provide substantial relief to struggling Florida homeowners, and ensures that our state gets its fair share of the relief being provided nationally,” stated Attorney General Pam Bondi. “This agreement holds banks accountable and puts in place new protections for homeowners in the form of strict mortgage servicing standards.”
In addition, she describes Florida’s share of the money ($8.4 Billion) as follows:
- Florida borrowers will receive an estimated $7.6 billion in benefits from loan modifications, including principal reduction, and other direct relief.
- Approximately $170 million will be available for cash payments to Florida borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and suffered servicing abuse.
- The value of refinanced loans to Florida’s underwater borrowers would be an estimated $309 million.
- The state will receive a direct payment of $350 million.
Attorney General Bondi also negotiated a separate agreement with the nation’s three largest mortgage services to ensure that a guaranteed portion of the overall settlement funds goes to Florida Borrowers.
Please call (813) 523-9222, or email micheleherndon@me.com for more details on how to get more information on how you may qualify for settlement act funds.