What does mortgage settlement mean for Iowans?

A $25 billion federal-state accord has been reached over mortgage foreclosure abuses, fraud and unacceptable mortgage practices.

The proposed agreement provides an estimated $40 million in direct relief to Iowa homeowners and addresses future mortgage loan servicing practices. Highlights of the agreement include:

• Iowa borrowers will receive an estimated $5,899,449 in benefits from loan term changes.
• Iowa borrowers who lost their home to foreclosure from January 1, 2008, through December 31, 2011, and encountered servicing abuse would qualify for $7,402,512 in payments to borrowers.
• The value of refinanced loans to Iowa’s underwater borrowers would be an estimated $11,602,880.
• The state will receive a direct payment of $15,330,480, which will be used for the Iowa Mortgage Help Hotline, housing counseling, Iowa Legal Aid, future enforcement, and agreement implementation and monitoring.
• The settlement does not grant any immunity from criminal offenses and will not affect criminal prosecutions or prevent homeowners or investors from pursuing individual, institutional or class-action civil cases.

More information will be made available as the settlement is implemented. To find out what kind of help you may be eligible for, go to www.nationalforeclosuresettlement.com/help or call the Iowa Mortgage Helpline at 1-877-622-4866. For further details on the proposed agreement, visit www.IowaAttorneyGeneral.gov.