West Virginians to receive money from mortgage settlement - Beckley, Bluefield & Lewisburg News, Weather, Sports

West Virginians to receive money from mortgage settlement

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CHARLESTON, WV -

West Virginians will receive more than $3.8 million in funds from a mortgage settlement.

Attorney General Patrick Morrisey announced June 4 that residents of the state who experienced a foreclosure sale between Jan. 1, 2008, and Dec. 21, 2011, may receive a check for approximately $1,480 during the next few weeks from the National Mortgage Settlement.

A total of 2,664 checks will be mailed the week of June 10 to West Virginia residents who were involved in 2,567 loans during the three-year period. Some loan payments are being split between borrowers who are now divorced or separated, which is why the number of checks is higher than the number of loans.

Earlier this year, West Virginia and 48 other states and the federal government announced the National Mortgage Settlement with five participating mortgage service providers—Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo. The settlement included a $1.5 billion payment pool the states and federal government negotiated and set aside to help compensate borrowers for mortgage servicing abuse they may have experienced.

"These payments serve two purposes," Morrisey said. "In addition to compensating borrowers for servicing abuses that happened in the past, they also are a part of our efforts to hold banks accountable and stop these practices through the settlement's new mortgage servicing standards."

The payment from the settlement does not disallow the borrower from seeking relief through a separate lawsuit or other claims, according to Morrisey.

Some payments may be delayed, however. According to Rust Consulting, payments for a small number of borrowers who submitted a claim form but did not have a valid Social Security number on file will be delayed while taxation and W-9 solicitation items are addressed. An additional 31,000 consumers whose information recently was provided by two different services will be notified by Rust later this summer.

Borrowers may receive less than the $1,480 payment if they divorced or separated and no longer live at the same physical address. The full amount will be paid, but will be split between the two borrowers.

Every borrower who filed a claim will receive a letter regarding their outcome, according to Morrisey's office. Borrowers who have questions about their payment should call settlement administrator Rust Consulting at 1-866-430-8358. Information also can be found at www.nationalmortgagesettlement.com.