Kansans Share In Mortgage Settlement

TOPEKA, Kan. (WIBW) - More than 1400 Kansas homeowners shared nearly $53 million in relief last year as part of a national mortgage settlement.

Attorney General Derek Schmidt announced the latest report on the settlement's implementation Friday.

In March, Kansas joined 48 other states, the District of Columbia and the federal government in a settlement against the nation's five largest mortgage servicers. The states alleged that the servicers were taking part in illegal conduct in the mortgage servicing market.

Under terms of the settlement, the mortgage servicers were required to provide mortgage assistance to borrowers.

According to the report, from March 1 to Dec. 31, 2012, 1,445 Kansans received mortgage assistance through the settlement. The average benefit was $36,667. The assistance came thru lien modifications and extinguishments, short sales, refinancing and other types of adjustments in mortgage obligations of affected homeowners.

“These national mortgage servicers engaged in lending practices that caused direct harm to hundreds of Kansas homeowners,” Schmidt said. “This national report shows that our enforcement action is continuing to provide the help that many Kansas homeowners desperately need.”

The five mortgage servicers involved in the settlement are Ally Financial (formerly GMAC), Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.

Kansans seeking more information can contact the attorney general’s Consumer Protection Division at 1-800-432-2310 or www.ag.ks.gov.


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