Office of Mortgage Settlement Oversight Created

For immediate release:  April 5, 2012
Contact:  Laura Brewer – 919-508-7821

Mortgage Settlement Monitor Begins Work
Joseph Smith appointed to oversee 49-state, five-bank pact; opens office in Raleigh
RALEIGH, N.C. – Joseph A. Smith, Jr. today officially assumed his position as the monitor of the mortgage servicing settlement among 49 states, the federal government and five major banks. In this role, Smith will work to ensure that the banks follow the requirements outlined in the settlement agreement. Today also marks the formal creation of the Office of Mortgage Settlement Oversight (OMSO), the body Smith has set up to facilitate his work.

Participants in the settlement unofficially named Smith as their choice in early February when news of the agreement became public, but both the settlement and Smith’s appointment became official when the United States District Court for the District of Columbia made final consent judgments affecting each of the banks.

In response to the agreement, Smith said, “Today, in keeping with the charge I’ve received from the Court and the parties to the settlement, I have opened the Office of Mortgage Settlement Oversight and begun to carry out my duties as Monitor.

“The mortgage settlement is a bipartisan achievement that holds promise for millions of people. Our nation depends on its home financing system not only to function properly, but also to inspire confidence in the people who use it. By itself, this settlement will not remedy every problem that system faces. But trust in our mortgage system can move forward if we use this opportunity to show fairness, transparency and accountability. This is a responsibility I take seriously.”

Smith will receive periodic reports from the settlement participants and oversee bank compliance with the agreement. The Monitor will then report his findings, determinations and actions to the Court and a Monitoring Committee of state and federal government representatives. The Monitor is empowered to work with noncompliant institutions to establish corrective plans, or, if necessary, to recommend penalties or to seek injunctive relief to enforce the settlement.

“Since the settlement was announced last month, people have understandably paid a great deal of attention to the specifics of the consent judgment – who will pay, who will receive, and how much,” Smith said. “Those are important matters to determine. But this settlement also serves those who do not participate in the transfer of money: the neighbors of distressed borrowers whose property values stand at risk because of foreclosed properties in their midst, the communities in which they live, the people saving now toward the goal of home ownership, and everyone whose living depends on a robust housing and home finance industry.”

More information about the mortgage settlement.

More information about the Office of Mortgage Settlement.

If you believe your home was illegally foreclosed on and you have not been contacted by a settlement administrator, the Lawyer Referral Service of the NH Bar Association may be able to help with a referral to an attorney who can review your situation.  A consultation with a competent attorney can make all the difference!  Call 603-229-0002 or request an online referral.

How Will the Mortgage Settlement Affect Distressed Homeowners?

49 state attorney’s general have reached a landmark agreement with 5 of the nation’s top loan servicers (Bank of America, Wells Fargo, Citi, JPMorgan Chase, and Ally/GMAC).  The settlement will provide up to 25 billion dollars in relief to distressed borrowers and direct payments to states and the federal government.

The agreement settles state and federal investigations finding that the loan servicers routinely signed foreclosure related documents outside the presence of a notary public and without really knowing whether the facts they contained were correct.  Both of these practices violate the law.

The settlement provides benefits to borrowers in the signing states whose loans are owned by the settling banks as well as to many of the borrowers whose loans they service.

Homeowners whose primary residence was part of a foreclosure action between January 1, 2009 and December 31, 2010, and whose home loan was serviced by a participating servicer, may be eligible for an Independent Foreclosure Review.  

To find out more information regarding how this settlement may affect borrowers or how to find out if you qualify for assistance, check out the new National Mortgage Settlement website, and/or read the press release from the NH Attorney General’s office.

If your home is in foreclosure, an attorney may be able to assist you.  Call the Lawyer Referral Service today at 603-229-0002 for a referral to a competent lawyer who specifically handles foreclosure matters in New Hampshire, or request an online referral.   A consultation with an attorney could make all the difference!