Coloradans affected by the mortgage-servicing debacle that led to a landmark $25 billion settlement should see a relief check sometime this month — and for more than initially thought.
Checks totaling more than $32.8 million are to be mailed to nearly 23,000 Colorado borrowers who had submitted a valid foreclosure-payment claim through the National Mortgage Settlement administrator, according to Attorney General John Suthers.
“I’m pleased that the final amount of $1,480 is much higher than the minimum amount we first announced,” Suthers said in a statement. “These payments help compensate borrowers for the mortgage servicing abuse that they likely endured.”
More than 7,000 Coloradans have already gotten about $405 million in mortgage relief, largely in the form of short-sale approvals, loan modifications and principal reductions, according to the five servicing banks that penned the deal in early 2012. Those earmarked for a check had a mortgage serviced by one of the five — Wells Fargo, Bank of America, JPMorgan Chase, Citi and Ally (formerly GMAC) — and lost their home to foreclosure between 2008 and 2011.
Only those who submitted a claim form and a return letter regarding their outcome can expect a check, Suthers said. Nationally, more than 962,000 checks will be mailed next week by mortgage-settlement administrator Rust Consulting. The funds come from a $1.5 billion pool.