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North Carolina Department of Justice
North Carolina Department of Justice
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National Mortgage Settlement

North Carolina played a lead role in the landmark national mortgage settlement with the country’s five largest mortgage loan servicers: Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo.

The settlement provided more than $441 million in assistance to North Carolina consumers and helped struggling homeowners by reducing principal debt balances, extinguishing deficiencies, and extinguishing second liens.  In addition, approximately 2,100 borrowers in North Carolina were able to refinance mortgages at lower interest rates.

It also includes new rules for mortgages that prohibit many past foreclosure abuses, such as robo-signing and inadequate documentation, and prevents unnecessary and improper foreclosures.  The settlement is helping all homeowners, not just those eligible for direct relief, by reducing foreclosures and stabilizing home values.

 
How consumers can find out if they are eligible
The mortgage servicers were obligated under the settlement to contact eligible borrowers directly.  If you were eligible for direct payments, you should have received and returned a claim form. 

However, if you have a loan with one of the five participating mortgage servicers and are experiencing difficulty in making payments, you should contact your mortgage servicer directly at the following numbers:


  • Bank of America: 1-877-488-7814
  • Citi: 1-866-272-4749
  • Chase: 1-866-372-6901
  • Ally (formerly GMAC): 1-800-766-4622
  • Wells Fargo: 1-800-288-3212

Direct payments to foreclosure victims
Most eligible consumers received direct payment checks in June of 2013. These were homeowners who had their mortgage serviced by one of the settlement’s five participating banks, lost their home to foreclosure between January 1, 2008 and December 31, 2011, and submitted a valid claim form.

Some consumers did not receive a check in the initial mailing or will receive a split payment for the following reasons:


  • In situations where borrowers are divorced or separated and no longer live at the same address, the payment will be evenly split between the borrowers.

  • Consumers who submitted a claim form but do not have a valid Social Security number on file were delayed in receiving their payments while tax-related issues were addressed.

  • Two servicers belatedly identified an additional 31,000 consumers who may be eligible for payments. Those consumers received a notice in the summer of 2013 and were given an opportunity to submit a payment application.

At this time, all eligible consumers should have received their direct payments.  Consumers with questions about their payment should call settlement administrator Rust Consulting at 1-866-430-8358.

Learn more about the settlement
For more information about the settlement, please visit: www.nationalmortgagesettlement.com or read our news release.

See also information about how the settlement will benefit North Carolina's economy.

Read updates on the settlement from the Office of Mortgage Settlement Oversight.