Understanding Regulation National Mortgage

If you’ve been paying attention to the news lately, you may have heard of the National Mortgage colony, but you can not know how it affects you.

Back in February announced the Attorney General, the federal government and 49 state attorneys general joined an agreement with the five largest mortgage companies in the country – Ally / GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.

Why?

States and the federal government argued that all investigations five lenders have reduced the seizures – plinth with a variety of other laws.

Examine According to the website of state and federal authorities resolve the situation: “The document signed loan managers regularly seized linked without the presence of a notary and without really knowing if they contain the facts were correct both practices violate the law .. ‘

The settlement was $ 25 billion. The money went to borrowers in difficulty, as well as states and the federal government. According to the Ministry of Justice, it is the largest settlement of consumer financial American history.

So, how does it affect you?

Regulation National Mortgage offers benefits to owners who have their mortgage with one of these five banks. Depending on your circumstances, it may be a direct payment of benefits.

Unfortunately, you can not know if you are entitled to any time soon. This is because the technician can take up to three years, to tell you that you are eligible!

What happens when you come into consideration?

A total of 1.5 billion dollars should be nationally distributed more than 750,000 owners. If you are one of them, you will be in one of three groups:

Homeowners who need loan modifications now

Regulation requires working loan services in five out $ 17 billion loan modifications essentially reduced privilege of first and second principal. If you qualify, your loan officer will need to contact you, but it can occur up to three years for this.

Borrowers who need to refinance

Regulation is also designed to keep more people in their homes, so that loan managers are required to provide easier 3 billion refinancing.

The idea is that if more people were at a lower rate than they can refinance paid, there may be fewer foreclosures in the future.

Borrowers who lost their homes between 2008 to 2011

If your home through foreclosure between the date of January 1, 2008 and December 31, 2011 word, you are entitled to a cash payment.

However, there are rules you must accept before you get money:

Firstly, you have the lender, not the inverse of contact. Who is eligible for this payment must send a claim form.
Second, if you agree to take the cash payment, you must also accept, not because of private claims against disclosure lender.
Third, if you use the account, you must declare that you are not in the process of reviewing individual participant currently performed by the Swiss Federal Banking Commission regulators.

If the settlement actually works?

Some. Argue No. In some states, payments have already begun, but not in the way many had expected

After the California Reinvestment Corporation, the lenders have made very little progress with the reduction of capital for borrowers. Instead, they gave priority selling.

Others argue that since the Office of controls on mortgages does not collect demographic data are the beneficiaries of the mortgage debt relief los colony (such as age, race, sex, income, etc.), it is difficult to decide whether this is money effectively. communities and neighborhoods hardest hit by foreclosures.