On February 9, 2012, a $25 billion national settlement was announced with the 5 largest mortgage servicers in the nation. The settlement follows an investigation by the Department of Justice, state Attorneys General and state banking regulators. Maryland's Commissioner of Financial Regulation, Mark Kaufman was one of three state banking regulators to serve on the Executive Committee of the investigation and the Office has been asked to serve as the only state banking regulator on the Monitoring Committee established as part of the settlement to oversee servicer compliance with the settlement.
The settlement addresses extensive problems uncovered in the servicing process including a practice known as "robo-signing" where banks and their agents submitted foreclosure documents that were not properly reviewed or notarized. The total national settlement is for $25 billion which will provide close to $1 billion of benefits to Maryland.
Specifically, the settlement involves loans which are or have been serviced by Bank of America, GMAC (now Ally Bank), Citibank, JP Morgan Chase and Wells Fargo.
For more information:
Maryland 's Attorney General, Doug Gansler's website: CLICK HEREOR Maryland's Department of Housing and Community Development's (DHCD) website: CLICK HERE
Thank you.
|
