New Mexico Attorney General’s Office
Consumer Protection Division
NATIONAL MORTGAGE SETTLEMENT
Questions & Answers
New Mexico Attorney General Gary King has joined a $25 billion multistate settlement with the nation’s five largest banks; Bank of America, JPMorgan Chase, Wells Fargo, Citi and GMAC/Ally. The settlement seeks to end problematic mortgage servicing practices and to help distressed homeowners. Substantial changes will be implemented in the servicing standards used by the named lenders. Implemented through the Attorney General’s Office, monetary relief will be offered to New Mexico homeowners utilizing a number of different programs to assist homeowners and prevent foreclosure. New Mexico's estimated share of the settlement is $91.7 million.
Can I get help from the settlement?
Generally, there are four ways that you might receive help:
How do I get more information on the relief that may be available?
Read the information provided in this flyer. Contact your servicer at the following numbers for more details about the program and more information about your eligibility:
Did you lose your home to foreclosure?
What are the programs that I may be eligible for?
HELP FOR BORROWERS IN FINANCIAL HARDSHIP
I am having trouble making my mortgage payments. Can I get any assistance from the settlement?
If your loan is serviced by one of the five banks listed – Bank of America, GMAC/Ally, Citi, Wells Fargo, or JPMorgan Chase - you may be eligible for assistance in the form of a loan modification, forbearance or forgiveness of principal, short sale, waiver of deficiency in loan balance, or other relief.
What are the requirements for obtaining relief or assistance?
The type of relief you may obtain will depend upon your individual circumstances; however, a few basic requirements for eligibility include:
Is the relief I may obtain limited to first lien mortgages?
No. Your bank may also offer relief on second liens.
I am unemployed. Is there any relief available for me?
If you are unemployed, you may be eligible for forbearance on loan principal or forgiveness of loan principal. Please contact your bank for information.
CASH TO CONSUMERS WHO LOST THEIR HOMES TO FORECLOSURE
This limited, flat fee payment is for borrowers who went through foreclosure and lost their homes. This payment is not intended to compensate the homeowner for the loss of their home and does not require the release of any individual claims the homeowner may have. Each homeowner who qualifies may still proceed with other remedies if the foreclosure action was wrongful.
Who is eligible for a cash payment?
Do I need to contact someone to apply for a cash payment?
No. A claim administrator will be selected and all eligible borrowers will be notified by letter. However, you can contact the New Mexico Attorney General’s Office at 1-800-678-1508 so that your name can be added to a list of potential recipients, or you can add your own information by visiting the website www.nmag.gov and clicking on the “National Mortgage Settlement Form” button.
How much will I receive?
Individual amounts will be determined by the number of eligible homeowners who apply. It is estimated that the payments will be in the range of $1,250 to $2,000 per claimant.
REFINANCE FOR “UNDER WATER” BORROWERS
Is my loan eligible for refinance?
If your loan meets all of the following criteria, you may be eligible to refinance under this program:
What loans are excluded for refinance under this program?
The following loans are not included in the refinance program: FHA or VA loans, second mortgages or home equity loans. Also, loans for manufactured homes, for unoccupied property or loans owned by Fannie Mae or Freddie Mac are also not eligible.
What are the terms of the refinance?
The amount of the reduction in your interest rate and other terms will vary depending on your loan and what your bank is offering. You will need to contact your bank for more details.
How do I apply for a refinance?
Eligible borrowers will be notified by the banks but you may contact their banks directly. (See bank contact information above)
BENEFITS PARTICULAR TO SERVICE MEMBERS AND VETERANS
The settlement contains a number of specific provisions designed both to protect service member’s rights under the law and to provide them with additional benefits. Some of those include: