New Jersey homeowners will receive an estimated $762 million in direct relief from the state’s share of a $25 billion joint state-federal settlement for alleged foreclosure abuses, Attorney General Jeffrey S. Chiesa announced today.
Department of Banking and Insurance Commissioner Thomas Considine said in a press release the relief is “a step forward for consumers as they work hard to recover from the last recession, (and) also a key step for mortgage servicers, as improved performance helps them turn the corner toward a healthier marketplace.”
The five settling mortgage servicers — Bank of America, Citi, JPMorgan Chase, Wells Fargo and Ally Financial — also will pay the state $75.5 million for various housing programs.
Under the terms of the settlement, New Jersey borrowers will receive an estimated $660 million in benefits from loan term modifications and other direct relief, and $12.5 million will be available for borrowers who lost their home to foreclosure between 2008 and 2011, and suffered servicing abuse. The value of refinanced loans to New Jersey borrowers who are under water — or owe more on their mortgages than their homes are worth — will be an estimated $89.5 million.
