In December 2013, 49 state attorneys general, the District of Columbia and the Consumer Financial Protection Bureau announced a settlement with the following three mortgage servicers:
• Homeward Residential Holdings (previously known as American Home Mortgage Servicing or AHMSI)
• Litton Loan Servicing
This bipartisan settlement will provide approximately $125 million in direct payments to borrowers.
The agreement settles state and federal investigations finding that these mortgage servicers engaged in various abuses during the foreclosure process, including signing foreclosure related documents outside the presence of a notary public and without knowing whether the facts they contained were correct.
Borrowers from Oklahoma will not be eligible for any of the relief directly to homeowners because Oklahoma elected not to join the settlement.
The relief includes $2 billion in first lien principal reductions and immediate aid to borrowers in need of loan modifications.
The relief includes $125 million in payments to borrowers who lost their home to foreclosure between January 2009 and December 2012. Notice Letters and Claim Forms will be mailed by the Settlement Administrator in June 2014.