Hundreds of Mainers to receive checks as result of ‘robo-signing’ abuses by mortgage companies

By Ryan McLaughlin, BDN Staff
Posted June 04, 2013, at 12:42 p.m.

AUGUSTA, Maine — More than 1,300 Maine residents are slated to receive checks as a result of the national “robo-signing” abuses under the National Mortgage Settlement, the state attorney general’s office announced Tuesday.

Eligible residents will begin receiving checks Tuesday in amounts averaging approximately $1,480.

The practice of robo-signing documents led to widespread abuses by national mortgage servicing companies that led to a $1.5 billion lawsuit against Ally Bank, Bank of America, Citi, JPMorgan Chase and Wells Fargo. Robo-signing is when bank employees sign large numbers of documents without verifying the information in them.

“The abuses by the national mortgage industry were extremely disturbing and they needed to be held accountable,” said Maine Attorney General Janet T. Mills. “In addition to the compensation to the people who were subjected to these bad practices, the settlement seeks to stop it from happening again by requiring tough new mortgaging servicing standards.”

Checks will be mailed to Maine residents who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011; had their mortgage serviced by one of the settlement’s five participating mortgage servicers; and filed a valid claim form.

Borrowers with questions about their National Mortgage Settlement payment should call settlement administrator Rust Consulting at 866-430-8358. Consumers with questions can also go to: www.NationalMortgageSettlement.com.

http://bangordailynews.com/2013/06/04/business/hundreds-of-mainers-to-receive-checks-as-result-of-robo-signing-abuses-by-mortgage-companies/ printed on September 22, 2014