Iowa property owners are estimated to receive approximately $40 million from a large mortgage settlement involving 5 banks and negotiated by 49 states attorneys and the federal government. Specifically, Iowa’s share of this settlement breaks down like this:
- Iowa borrowers will receive an estimated $5,899,449 in benefits from loan term changes
- Iowa borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and encountered servicing abuse would qualify for $7,402,512 in payments to borrowers
- The value of refinanced loans to Iowa’s underwater borrowers would be an estimated $11,602,880
- The state will receive a direct payment of $15,330,480
Unfortunately, the complexity of the mortgage market and the huge scope of the settlement means that borrowers will not immediately know if they qualify for payments or loan modifications. Additionally, banks have up to 3 years to implement the terms of the settlment into their systems and processes.
As of Feburary 10, the settlement included the following banks:
Ally: 1-800-766-4622
Bank of America: 1-877-488-7814
Citi: 1-866-272-4749
Chase: 1-866-372-6901
Wells Fargo: 1-800-288-3212
Iowa Mortgage Help Hotline: 877-622-4866
Loans held by other banks or by Fannie Mae and Freddie Mac are not currently part of the settlement. However, the federal government is working on a settlement with additional banks, so it is likely that the list of included banks will grow in the next several months.
A number of resources are available for Iowans seeking more information on this settlement:
- Iowa Mortgage Help
- Iowa Attorney General Tom Miller – Website
- National Mortgage Settlement Website
- Article on Settlement – New York Times
Sources: Iowa Attorney General, National Mortgage Settlement Website
