The National Mortgage Settlement is the $25 billion joint state-federal settlement agreement reached in February 2012 with five of the nation’s largest mortgage servicers, and approved April 2012. It stems from the so-called robo-signing scandal that erupted in 2010, where the banks — Ally, Bank of America, Citi, JPMorgan Chase and Wells Fargo — were accused of shoddy mortgage paperwork.
Ohio’s share of the settlement is more than $335 million.
More than $48 million in Ohio is going to pay claims to eligible borrowers, said Dan Tierney, spokesman for Ohio Attorney General Mike DeWine. The remainder of the $335 million is funding property demolition grants, mortgage refinancings and loan modifications.
Qualified borrowers who lost their homes between Jan. 1, 2008, and Dec. 31, 2011 will receive cash payments. They should’ve already been notified in the mail.
Original estimates were that 55,086 foreclosed Ohio mortgages were eligible to receive a minimum of $840 in compensation. But due to a smaller number of claimants nationally, the compensation rose to approximately $1,480, the Ohio Attorney General’s Office said.
Claims were filed on 32,547 Ohio loans on behalf of 33,876 Ohio borrowers (some loans have multiple borrowers).
“Ohioans turned in a greater average of claims than the national average,” Tierney said.
Ohio had a response rate of about 58 percent compared to the national average of about 50 percent, Tierney said. The deadline to file claims was Jan. 18.
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