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| Pathways Advisory Group, Inc. Dustin J. Smith, CFP® |
February of last year the 49 state Attorney Generals, including California’s Attorney General, reached a settlement with the five major banks (Wells Fargo, Citibank, JP Morgan Chase/Washington Mutual, Bank of America/Countrywide and Ally Financial). It made some headlines, but seemed to fly under the radar. And, to this point, the “actual” benefits of the settlement have been difficult to quantify.
Was the settlement simply overshadowed by the relative success of the federally subsidized refinance program HARP 2.0? Perhaps. But the National Mortgage Settlement is a year old and remains mysterious. Some argue that the banks have not complied. Others believe transparency is the problem. I don’t know which borrowers have been targeted but some qualified borrowers may still be eligible for settlement benefits. And apparently some money is earmarked for the Central Valley. The settlement description originally mentioned principal reductions, cash settlements, refinances and/or modifications. It’s a long shot, but, if 1) you, or someone you know, have been searching for a refinance/restructure unsuccessfully and 2) the loan was owned/serviced by one of the five banks mentioned above, it may be worth an inquiry. They may not be diligently searching for qualified borrowers!
If interested in an inquiry, the following websites may be a starting point: Wells Fargo. Citibank. JP Morgan Chase. Bank of America. Ally Financial. And this is the Official National Mortgage Settlement Website.
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