Idaho Attorney General Lawrence Wasden announced today that 1,653 Idaho homeowners have received $96,404,176 from five banks to date in mortgage relief under a landmark mortgage settlement.
The settlement obligates five banks—Ally, Bank of America, Citi, J.P. Morgan Chase and Wells Fargo—to provide $20 billion in mortgage relief nationwide in the wake of the bursting of the housing bubble. More than $99.8 million was earmarked for direct relief to Idaho homeowners whose mortgages were owned and/or serviced by any of the five settling banks.
Approximately 5,000 Idaho borrowers lost their homes to foreclosure between Jan. 1, 2008, and Dec. 31, 2011, because of substandard servicing practices. It was estimated that the average borrower could receive between $1,500 and $2,000 in relief.
Additionally, the five banks identified 12,207 Idahoans who are eligible to receive money from a $10 million restitution fund. Eligible borrowers were notified by mail in late September. The deadline for borrowers to respond to the claims administrator is January 18, 2013.