Tuesday, February 14, 2012

In Addition to $25 Billion Settlement, Nevada's AG Wins More

In addition to the $25 billion settlement between the five largest servicers and 49 states, Nevada’s Attorney General Catherine Cortez Masto reaped more for Nevada homeowners through an additional settlement with Bank of America.

“I fought for and consequently received additional coverage that is above and beyond what is included in the national multistate settlement for Nevada homeowners who have been devastated by the foreclosure crises,” said Masto in a statement. “My team and I have taken our time to surgically review and subsequently change the national settlement to ensure that it delivers adequate and immediate consumer relief.”
Masto won Nevada $750 million in relief for lien principal payments and short sales from BofA and $30 million for
consumer protection efforts. BofA is also required to suspend foreclosure sales for borrowers who are eligible for the National Homeownership Retention Program and solicit borrowers who may qualify.
In December 2010, Masto’s office sued BofA to undo a deal made in October 2008 on loan modifications under Countrywide, claiming the lender did not meet obligations. According to a New York Times article, the bank did not provide loan modifications to qualified homeowners as required, foreclosed on borrowers with pending modification requests, and failed to meet the 60-day requirement on granting new loan terms.
For Nevada residents, the estimated share for the national settlement between BofA, JPMorgan Chase, Wells Fargo, Citigroup, and Ally is $1.5 billion, with a breakdown that will go as follows:
$1.3 billion in benefits form loan term modifications and other direct relief
$57 million for those who qualify due to losing their home to wrongful foreclosures from January 1, 2008 through December 31, 2011
$42 million for underwater borrowers
$60 million as a direct payment in addition to the $30 million as part of the BofA settlement
Nevada can continue to pursue criminal actions against the banks, and the settlement does not prevent homeowners or investors from pursuing cases against the top five servicers.

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