Attorneys General National Mortgage Settlement Agreement

National mortgage_settlement

In March 2012, the National Mortgage Settlement with the Attorneys General of all 50 States was agreed in the amount of Twenty Five Billion Dollars.

The following information was just emailed to me by Colorado State Representative Beth McCann. Representative McCann is a wonderful person as well as one of the most tireless advocates for consumer rights I’ve ever had the pleasure to meet. I herein paraphrase her email as follows:

“For those homeowners still in their homes and who continue to get the run around from the mortgage servicing companies please have them file a complaint with the Colorado Attorney General’s (CO AG’s) office. They have an escalation process under which they can escalate these types of complaints to an executive level contact person within the companies.  Click here for the link to file such a complaint.

For those homeowners who have lost their home to foreclosure, per the referenced settlement, they will be contacted to receive payment from the settlement.  The CO AG’s office is in the process of hiring a claims administrator who will issue notice to these borrowers. These foreclosed former homeowners will need to fill out and file a claim form. The individual recovery is expected to range from $1,500 – $2,000.  However, this will depend on the number of eligible claims the states receive.  If a homeowner who has lost their home to foreclosure would like to make sure that they receive this notice, they may file a complaint with the AG’s office using the same form as set forth above.

For homeowners that have not been successful in negotiation for a mortgage modification with their mortgage servicer, contact the Colorado Foreclosure Hotline at 1-877-601-HOPE (4673).  They can also contact the banks directly at their new 1-800 numbers.  All of this information can be found on the CO AG’s website:

For updates to the National Mortgage Settlement be sure to check the comments section, below.

Feel free to pass this along to your clients and others dealing with this issue!

Image attribution

Financially Speaking™ James Spray, MLO, CNE, FICO Pro
CO LMO 100008715 | NMLS 257365 | April 31, 2012

Notice: The information on this blog is opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only. You may use this information in whole and not in part providing you give full attribution to James Spray.


9 comments on “Attorneys General National Mortgage Settlement Agreement

  1. James Spray says:

    The CO AG opened the four part settlement for public comment. Check with your states Attorney General office for like information.


  2. James Spray says:

    On March 16, 2012, Attorney General John Suthers issued a decision allocating the funds among various programs to serve these purposes. For more information about this allocation please visit the Attorney General’s website.

    The Attorney General allocated $24.0 Million to fund supplemental loan modification programs. At the time of his decision, three programs were identified that would supplement the refinancing options and loan modifications programs that are currently available to borrowers under the settlement and other programs. Since the issuance of the Attorney General’s decision, a fourth program has been identified. The details of these four programs are summarized on this link >


  3. James Spray says:

    AG Miller of Iowa speaks to the industry on the settlement:


  4. James Spray says:

    The PriceWaterhouse audit letter to Ally-GMAC is quite interesting for leagle eagles –


  5. James Spray says:

    “. . . The missteps by Treasury have produced a valuable byproduct: the widespread anger that may contain the only hope for meaningful reform. Americans should lose faith in their government. They should deplore the captured politicians and regulators who distributed tax dollars to the banks without insisting that they be accountable. The American people should be revolted by a financial system that rewards failure and protects those who drove it to the point of collapse and will undoubtedly do so again.
    Only with this appropriate and justified rage can we hope for the type of reform that will one day break our system free from the corrupting grasp of the megabanks. . . .”


  6. James Spray says:

    Progress Report from the Monitor of the National Mortgage Settlement


  7. James Spray says:

    This summarizes the division of the settlement proceeds for CO:
    * $18.196 million for affordable housing programs;
    * $5.625 million for housing counseling through the state;
    * $1.5 million for Colorado Legal Services;
    * $750,000 for temporary staffing at the Attorney General’s Office;
    * $600,000 for the Colorado Foreclosure Hotline; and,
    * $500,000 for marketing and outreach efforts.


  8. James Spray says:

    Handy complaint form, including military and military support:


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s