Attorney General Bob Cooper announced Wednesday that claim forms are being mailed to an estimated 37,000 Tennessee borrowers who may be eligible for payment under the $25 billion national mortgage foreclosure settlement.  

Eligible borrowers include those who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 to one of the nation’s five largest mortgage servicers: Ally/GMAC, Bank of America, Citi, JPMorgan Chase, and Wells Fargo.  Earlier this year, these five mortgage servicers previously agreed to a settlement with the federal government and attorneys general for 49 states and the District of Columbia.

The settlement, which took effect in April, earmarked approximately $1.5 billion in payments for two million borrowers nationwide who lost their homes to foreclosure during that period and had their loan serviced by one of the settling servicers.  The exact payment will depend upon the total number of borrowers who decide to participate.

“Eligible Tennesseans are not giving up any legal rights to pursue other legal remedies if they decide to participate in this agreement,” Attorney General Cooper said.  “This payment is intended as partial compensation for the mortgage servicers’ illegal conduct and servicing abuse.”

Last week, the national settlement administrator mailed notification postcards to eligible borrowers nationwide.  In Tennessee, packets containing a letter from the Attorney General, claim form, instructions, and answers to frequently asked questions are being mailed to eligible borrowers beginning this week and continuing through Oct. 12.

Attorney General Cooper urged eligible Tennesseans to complete their claim forms and return them as soon as possible in the envelope provided, or file them online at www.nationalmortgagesettlement.com. The deadline for all claims is Jan. 18, 2013.  Payment checks are expected to be mailed in mid-2013.

Borrowers who have questions or need help filing their claim can contact the settlement administrator, toll-free, at 1 866 430-8358, or send questions by email to administrator@nationalmortgagesettlement.com.  The information line is staffed Monday through Friday from 7 a.m. to 7 p.m. CT.

Eligible borrowers do not need to prove financial harm to receive a payment, nor do they give up their rights to pursue a lawsuit against their mortgage servicer or to participate in the Independent Foreclosure Review Process being conducted by federal bank regulators.  More information about that program is available at www.independentforeclosurereview.com.  However, any payment received may reduce payments borrowers may be eligible to receive in any other foreclosure claim process or legal proceeding.

Tennesseans who believe they may qualify for a payment, but did not receive a notice because they have moved, should contact the settlement administrator directly to provide that information.  

For more information about eligibility and filing a claim:

Website: www.nationalmortgagesettlement.com

Email: administrator@nationalmortgagesettlement.com

Call toll-free: 1 866 430-8358 (hearing impaired: 1 866 494-8281). The line is staffed Monday through Friday from (7 a.m. to 7 p.m. CT).