LANSING, Mich. (WZZM) -- Approximately 72,000 Michigan borrowers who submitted a valid foreclosure payment claim through the National Mortgage Settlement will receive checks this week, announced Attorney General Bill Schuette on Monday.
Each of the Michigan borrowers is expected to receive about $1,480, which is a share of the $107.2 million in restitution for mortgage servicing abuses from the national foreclosure crisis.
"Thousands of Michigan residents were affected by the recent foreclosure crisis that consumed the country," Schuette annouced.
Michigan borrowers who are eligible had their mortgage serviced by one of the settlement's five participating servicers, lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011, and submitted a valid claim form. The participating servicers are Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, and Wells Fargo. Eligible borrowers who filed a claim should have also received a letter regarding their eligibility.
Schuette says, "These funds will help victims of mortgage servicers' abuses rebuild their lives, and we will work to ensure devastating practices like these never happens again through enforcing new mortgage servicing standards."
In February 2012, Schuette and 48 other state attorney generals and the federal government announced the National Mortgage Settlement. So far, preliminary data shows that servicers have provided more than $50 billion in direct settlement relief to borrowers nationwide.
However, Schuette also says that the payment does not limit borrowers from seeking relief through a separate lawsuit or other claims.
Borrowers with questions about their National Mortgage Settlement payment should call settlement administrator Rust Consulting at 1-866-430-8358 or consult the Attorney General's National Mortgage Settlement here.
Mortgage Settlement Background
The National Mortgage Settlement was created following state and federal investigations that alleged five mortgage servicers committed abuse in their foreclosure procedures. The settlement created broad reform of the servicing procedure.
In the settlement, Michigan received $1 billion in benefits and the State of Michigan received a direct payment of $97 million from the servicers.
In addition, Schuette worked with the legislature and Gov. Snyder to establish the Michigan Homeowner Protection Fund to ensure the funds are directed toward victims of the foreclosure.
To access the Homeowner Protection Fund and see the break down of funds, click here.