Homeowners in foreclosure in 2009 and 2010 can request independent foreclosure reviews and get restitution if they were financially harmed by errors or misrepresentations by 14 of the nation's largest loan servicers, according to a new program announced Tuesday.
As many as 4.5 million homeowners nationwide who believe 14 loan servicers, including the largest operating in Georgia, unfairly or illegally foreclosed upon them will get a chance to ask for an independent review and could get restitution under a federally prescribed program.
It was unclear how many Georgians’ loans were being serviced by the businesses, which include Wells Fargo, SunTrust Banks, Bank of America and JPMorgan Chase & Co. Also unclear is how Georgia’s foreclosure process, which doesn’t include the courts, will affect the appeal.
John Walsh, the acting U.S. Comptroller of the Currency, announced the program Tuesday morning as part of the ongoing consent order requiring servicers to correct deficiencies discovered by earlier reviews of records.
Information can be found at www.IndependentForeclosureReview.com
Last month Walsh said the impact of the new federal program or amounts of payouts to homeowners will be uncertain until it gets under way.
“The amount of restitution is open-ended and will only be known when the process ends,” he said in a speech.
He outlined the appeal process saying homeowners who think they were financially harmed due to servicer errors, deficiencies or misrepresentations during foreclosures that were in process in 2009 and 2010 will be able to contact a single phone number, website or mailing address to get forms and make appeals. Each case will be reviewed by independent consultants hired by banks but who will work at the direction of his office, Walsh said.
John R. Bartholomew IV, an attorney with the Atlanta Legal Aid Society’s Home Defense Program, said, the details of the program will determine how much this might impact Georgia homeowners.
“Ultimately, it’s going to take a while to see if the results are fair, and if they are compensating borrowers fairly.”
