National Mortgage Settlement - At a Glance

Iowa Attorney General Tom Miller recently announced a landmark $25 billion national joint federal-state settlement involving the nation’s five largest mortgage servicers. The settlement addresses mortgage foreclosure abuses, fraud and unacceptable nationwide mortgage servicing practices.


What this means for Iowans:

To be eligible to benefit from the settlement, Iowa homeowners mortgages must be serviced by one of the participating banks listed below.

  • Bank of America
  • Citi
  • Chase
  • Ally (formerly known as GMAC)
  • Wells Fargo

  • Loan modifications:
  • Modifications relief could include significant principal reductions for borrowers that owe more than their homes are worth and are either delinquent or at imminent risk of default or foreclosure.

  • Past Foreclosures:
  • Iowa homeowners who lost their home to foreclosure from January 1, 2008 through December 31, 2011, and encountered servicing abuse may qualify for this assistance. Average payments to homeowners under this benefit are expected to be approximately $1,000-$1,500. $1,500-$2,000

  • Refinancing opportunities:
  • Refinance relief could be available for Iowa homeowners who are current on their mortgages but owe more on the mortgage than their home is worth.

  • Direct payment to the State of Iowa to assist Iowa homeowners:
  • These funds will be used for foreclosure prevention initiatives including counseling, mediation, legal aid and future related initiatives to assist Iowa homeowners.

  • Help for Homeowners:
  • A new tool is now available to eligible homeowners through the Emergency Foreclosure Assistance Fund. This fund may assist homeowners in filling gaps to make their mortgage payment with up to $2,000 in assistance.


    Next step for Iowa homeowners:

    Iowa homeowners who may be eligible for the settlement benefits or who are at-risk of foreclosure should contact Iowa Mortgage Help (IMH) at 877-622-4866 or visit www.IowaMortgageHelp.com for assistance with the settlement benefits and free, confidential mortgage counseling.


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