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Mortgage settlements due to 1,413 Hawaii residents

By Erika Engle

LAST UPDATED: 10:03 a.m. HST, Jun 04, 2013

The National Mortgage Settlement will result in 1,413 Hawaii residents receiving checks for $1,480.

Hawaii’s $2,054,146.64 portion of the national settlement will be evenly divided among homeowners who submitted valid claims after losing their homes to foreclosure between January 1, 2008 and December 31, 2011.

The mortgage servicers found liable in the national settlement were Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo.

“These checks come from a $1.5 billion payment pool we negotiated and set aside as part of the National Mortgage Settlement,” said David Louie, state Attorney General, in a statement.

“These payments help compensate borrowers for the mortgage servicing abuse that they likely endured.”

He added that the $1,480 check amount “is much higher than the minimum amount we first announced, which was $840.”

Receipt of the settlement payment does not limit a borrower from seeking relief through a separate lawsuit or other claims, he said. 

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thepartyfirst wrote:
Banks got billions for approving bad loans from the stimulus package. Homeowners lost their job, got kicked out of their homes through foreclosure, got their credit score ruined and all they got is $1480.00? Something is wrong, wrong with this picture.
on June 4,2013 | 10:51AM
Hapa_Haole_Boy wrote:
They shouldn't have bought homes they couldn't afford. We were responsible, bought only what we could afford, yet we're not getting free money from the govt. In fact, our taxes are going up to pay these irresponsible homeowners. Something is wrong, wrong with this picture.
on June 4,2013 | 12:28PM
Hanalei13 wrote:
I agree with your first point; people shouldn't be buying homes they know they can't afford, especially knowing that if something pops up, they'd be in a bind. You would think that people would have enough sense to know something was up when they got approved for a mortgage they knew they really shouldn't have. Just silly. However, our tax dollars ARE NOT paying for this settlement; the above named lenders who were found to have violated the law in their lending practices were fined and the fines collected are being paid back out to affected (previous) homeowners. Really no winners here, though...
on June 4,2013 | 01:45PM
steveoctober wrote:
Tax dollars still affected because the money has to come from somewhere - less capital investments by banks, more layoffs, all means less tax dollars coming in. This is really just more social welfare for those who are proven to be financially irresponsible. Meanwhile, the financially responsible folks get screwed over yet again.
on June 4,2013 | 04:50PM
BluesBreaker wrote:
You're wrong. There are no tax dollars involved. The money is coming from the banks who were guilty of making bad loans. they cut the deal to avoid going to court (and jail). It's part of an agreement with the AGs of all the states.
on June 4,2013 | 11:25PM
BluesBreaker wrote:
Both sides were to blame. Banks shouldn't have lowered their credit standards and told people who obviously couldn't afford the homes that they could. Because the banks knew they were going to sell the loans before they blew up,they didn't care. The more bad loans they could make and sell, they more they profited. The bad loans were purchased and bundled as securities and sold with an AAA rating, thanks to S&P and Moody's who made money by blessing the packages of bad loans. That's what happens when you deregulate and let the market take care of itself--people get greedy and stupid.
on June 4,2013 | 11:23PM
Grimbold wrote:
Banks were pressured by leftist politics to make loans to unqualified People.
on June 5,2013 | 01:14AM
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