Largest Settlement Since Tobacco

Press Release

US Department of Housing and Urban Development

HUD Secretary Donovan and Iowa Attorney General Tom Miller Unveil First Public Service Announcement for $25 Billion Mortgage Servicing Settlement
Television PSAs, Homeowner Help Website, New Mortgage Assistance Guide launched to educate homeowners about resources available to them through historic mortgage servicing settlement

August 2, 2012

U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan and Iowa Attorney General Tom Miller announced today the launch of the National Mortgage Servicing Settlement’s first public service announcement (PSA) television ad titled “Homeowner Help.” The PSA, which can be viewed at www.hud.gov and www.nationalmortgagesettlement.com, is designed to educate homeowners about the resources available to them through the mortgage servicing settlement.

The “Homeowner Help” PSA, amplified through three key components – 30 second television and radio spots, customized for both national and local media markets, a HUD Homeowner Help website and a new Mortgage Assistance Guide– is aimed at educating homeowners about the various options and opportunities they can seek for assistance to find out if they are eligible to benefit from the settlement.

“The National Mortgage Servicing Settlement represents the single largest-scale principal reduction effort we’ve seen since this housing crisis began and the PSAs and online tools announced today will create an extended opportunity for homeowners, across the country, to gain access to information, options and opportunities that could help to keep them in their homes,” said HUD Secretary Shaun Donovan. “Already the servicing settlement is helping homeowners and making a difference, and our goal is to ensure every eligible family is aware of the help it provides.”

In addition to being televised, “Homeowner Help” will also be broadcast in both English and Spanish language radio formats for national and localized markets. The launch of the national PSA and new online tools will remind people who are in mortgage trouble, to call the their servicer, Homeowner’s HOPE Hotline at 888-995-HOPE or visit the national settlement website at NationalMortgageSettlement.com to seek out available help.

Homeowners Gain Relief Under $25 Billion Mortgage Settlement

Attorney General Highlights the Program’s Impact

“If we learned anything from the housing crisis, it’s that there’s no single solution,” said Iowa Attorney General Tom Miller. “We want homeowners to understand the options available through this settlement. Public service announcements are already running in Iowa, and we hope the shared information truly helps people.”

The Landmark $25 Billion Agreement

In April, a Federal District Court approved a $25 billion settlement involving the Justice Department, the Department of Housing and Urban Development, 49 state attorneys general, and the nation’s five largest mortgage servicers — Ally/GMAC, Bank of America, Citi, JP Morgan Chase, and Wells Fargo.

How the Settlement Helps Homeowners

The agreement aims to fix past mortgage loan servicing and foreclosure abuses. It will offer up to $25 billion in relief to borrowers and direct additional payments to state and federal governments. This marks the largest multi-state settlement since the 1998 Tobacco Settlement.

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