Joint State-Federal National Mortgage Servicing Settlements

Updated: 10-31-14

The September 15, 2014 deadline for submission of claim forms has passed and claims are no longer being accepted. Payments on valid claims are expected to be made in December 2014; however no specific date is known at this time.  Please check this website periodically for updates, as more information will be posted when available.

This website provides information on the joint state and federal Settlements involving residential mortgage foreclosures and loan servicing.  For information about the settlement for which you may be eligible, begin by locating your Mortgage Servicer – the entity to which you sent your monthly Mortgage Payments up until your foreclosure – from the list below, or clicking on the name of the settlement.  When you click on your Servicer, you will be directed to information about that specific settlement.  If you do not know your Mortgage Servicer’s name, you may click on one of the settlement Icons to get more information.

American Home Mortgage Servicing (AHMSI)
Homeward Residential Holdings


Ally (formerly known as GMAC)                  
Bank of America

JPMorgan Chase

Wells Fargo

Payments to borrowers who lost their homes to foreclosure with Ocwen, Litton, Homeward (also known as American Home Mortgage Servicing or AHMSI)

The National Ocwen Settlement Administrator mailed Notice Letter and Claim Forms in June 2014 to those borrowers who lost their home due to foreclosure between January 1, 2009 and December 31, 2012 and whose loans were serviced by one of the three mortgage servicers that are parties to the settlement.



IRS Issues Tax Ruling on Settlement Payment to Borrowers

Updated: 01-22-14

The tax consequences of payments received under the National Mortgage settlement (NMS) depend on the unique facts and circumstances of each individual borrower.  The NMS Monitoring Committee proactively sought a ruling from the IRS to provide guidance regarding the taxable status of these payments.  IRS Ruling 2014-2 can be viewed here:  The Monitoring Committee will not issue any tax forms (including a Form 1099), and your payment will not be reported to the IRS or other tax authorities.  However, you should consult with your tax advisor to determine whether the payment is taxable income in your specific situation.  The Settlement Administrator and the Attorneys General offices are not able to provide tax advice.


CFPB, States Reach Settlement with Ocwen

Updated: March 5, 2014 (Consent Judgment documents added)

  • $2 Billion in principal reduction
  • $125 Million in cash to foreclosed homeowners
  • Modeled on National Mortgage Settlement

The Consumer Financial Protection Bureau (CFPB), together with attorneys general and state banking regulators in 49 states, and the District of Columbia have filed a proposed court order requiring the largest nonbank mortgage loan servicer in the country, Ocwen Financial Corporation, and its subsidiary, Ocwen Loan Servicing, to provide $2 billion in first lien principal reduction to underwater borrowers. The consent order addresses Ocwen’s misconduct during the mortgage servicing process. It also covers two companies previously purchased by Ocwen, Litton Loan Servicing LP (“Litton”) and Homeward Residential Holdings LLC (previously known as American Home Mortgage Servicing, Inc. or AHMSI).  Ocwen must also refund $125 million to the nearly 185,000 Ocwen, Litton, and Homeward  borrowers who have already been foreclosed upon and Ocwen must adhere to significant new homeowner protections.

The consent order requires that Ocwen follow the servicing standards set up by the 2012 National Mortgage Settlement (NMS) with the five largest banks.  Ocwen’s compliance with this settlement will be monitored by the same professional monitoring team currently in charge of enforcing the NMS, led by former North Carolina Banking Commissioner Joe Smith.

Further information concerning the Ocwen settlement is available here:

Payments to borrowers to begin June 10, 2013

Update: June 4, 2013

The date for the distribution of checks to borrowers who submitted valid claims has been set.  Checks will begin mailing on June 10 and will be completed by June 17, 2013, and the payment amount for each loan is approximately $1,480.  The exact amount is not being released to help prevent fraud.  Please allow time for delivery of payments.  The Settlement Administrator cannot provide specific mail dates for individual borrowers at this time.

Payments to borrowers who lost their homes to foreclosure

Update: May 13, 2013

Approximately $1.5 billion of the funds recovered in the national settlement are being used to compensate borrowers who lost their home to foreclosure during the period of January 1, 2008, to December 31, 2011.  The deadline to submit a claim form has now passed. If you have submitted a claim form, the Settlement Administrator Rust Consulting, will contact you if any additional information is needed to complete your claim.

Rust Consulting can be reached at 1-866-430-8358.  Checks to borrowers who submitted claim forms are expected to be mailed mid-2013.  The processing of the claim forms is underway and until it is completed, the exact dollar amount of the payments is not determined, however, it is anticipated it will exceed the minimum payment of $840 that was indicated on the claim form.  Borrowers who submitted claims have been contacted if additional information is needed for the processing of the claims.  The Settlement Administrator is not authorized to release specific information about the number of claims submitted at this time, pending the conclusion of the distribution process.

Please be aware that Rust Consulting is also the settlement Administrator for the Independent Foreclosure Review (IFR) Payment Agreement obtained by the Office of the Comptroller of the Currency and the Federal Reserve Board.  The IFR settlement is completely separate from the National Mortgage Settlement and does not include the same governmental agencies.  The IFR payments began in mid-April of 2013, and will continue in mailings until July 2013.  You can find additional information on the OCC Independent Foreclosure Review settlement at this website:

You may be eligible for payments under both settlements.  Accepting a payment from either settlement will not affect any rights you may have to take legal action related to your foreclosure.

Homeowners should also be wary of scams.  Unscrupulous companies are contacting homeowners with offers of assistance for a fee to receive the settlement payment.   You should not pay a fee to receive a payment under either agreement.

Federal Government & Attorneys General reach landmark settlement with major banks

Roughly $25 billion in relief for distressed borrowers, states and federal government...

In February 2012, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest mortgage servicers:

The settlement provides as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998.

The agreement settles state and federal investigations finding that the country’s five largest mortgage servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct.  Both of these practices violate the law.  The settlement provides benefits to borrowers whose loans are owned by the settling banks as well as to many of the borrowers whose loans they service.

  • About the Settlement: Learn about the settlement, who is affected and what claims may still be pursued against the banks. Find links to your state Attorney General’s Office to find state-specific information and contacts.
  • Help for Borrowers: Learn how to find out if your loan is affected by this settlement, the timeline for relief, how you will know if you are eligible. Find links to your state Attorney General’s Office to find state-specific information and contacts.
  • News: Read the national news release and find links to your state Attorney General’s Web site for state-specific news.