florida attorney general mortgage settlement who received the funds

The state will receive a direct payment of $334 million. In addition to the terms of the national settlement agreement, Attorney General Bondi separately negotiated an agreement with the nation’s three largest mortgage servicers to ensure that a guaranteed portion of the overall settlement funds goes to Florida borrowers.

Full Answer

What is the purpose of the mortgage servicing settlement fund?

The funds from the Mortgage Servicing Settlement Fund are to be transferred to the General Fund as state revenue to be appropriated, subject to the approval of the director of the Division of Budget and Accounting, for the following purposes: attorneys fees, investigation and other expenses related to the investigation and resolution of the mortgage servicing settlement, affordable housing, local planning services, developmental disabilities residential services, state rental assistance program, jomelessness prevention, shelter assistance, community-based senior programs, mental health residential programs, social services for the homeless, and Temporary Assistance for Needy Families, but only to the extent that the use of these funds comports with the settlement for the use of these funds.

How many states are involved in the National Mortgage Settlement?

Department of Justice and other federal agencies—includes direct payments to the federal government, the participating 49 states and individual borrowers.

What is the Rhode Island Foreclosure Protection Program?

The entire amount will be used to fund the Rhode Island Foreclosure Protection Program to prevent or reduce the number of initiated foreclosures in Rhode Island and assist homeowners struggling with mortgage payments. The program will be developed by the Office of the Attorney General in consultation with Rhode Island Housing.

How long does it take for a mortgage to pay direct payments?

Direct payments to mortgage borrowers will begin once a settlement administrator is retained, within 90 days of the settlement’s effective date. In addition to the payments, the servicers have agreed to follow new standards for handling mortgage loans and foreclosures.

What are the mortgage servicers?

The five mortgage servicers—Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo —collectively service nearly 60 percent of the U.S. mortgage market. While mortgage loan servicers collect and process mortgage payments and handle defaults and foreclosures, the servicers often do not own the underlying loans.

How much money did the National Association of Attorneys General receive?

The National Association of Attorneys General will receive $15 million to create and administer the “Financial Services and Consumer Protection Enforcement, Education and Training Fund.”. The Conference of State Bank Supervisors will receive $65 million—$15 million will establish the “State Financial Regulation Fund” and $1 million will go ...

How much did the federal government get for whistleblower lawsuits?

The federal government will receive $912 million for five whistleblower lawsuits and losses incurred by the FHA Capital Reserve Account, the Veterans Housing Benefit Program Fund and the Rural Housing Service. The 49 participating states will split $2.5 billion based on criteria such as the number of foreclosures and other factors, with California, Florida, Texas, New York and Illinois receiving the largest amounts respectively. The settlement agreement allows each state to designate up to 10 percent of the amount paid to each state as a civil penalty, fine or similar payment.