Pam Bondi Urges Qualified Borrowers to Submit Claims Forms for 'Robo-Signing' Scandal Settlement

In a press release Friday, Florida Attorney General Pam Bondi reminded eligible borrowers that the Jan. 18, 2013, deadline to file a claim for payment under the national settlement is fast approaching.

To date, approximately half of the peopleto whom notices have been sent have not yet filed claims. Eligible borrowers include those who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and had mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo.

Forms have been mailed to qualified borrowers, and they must be completed and returned by Jan. 18, 2013, in the envelope provided, or they can be filed online at www.nationalmortgagesettlement.com. For more information, borrowers should contact the settlement administrator at 1-866-430-8358.

This $25 billion settlement between the nations five largest mortgage servicers and the federal government and 49 states and the District of Columbia, earmarked approximately $1.5 billion in payments for 2 million borrowers nationwide. In Florida, approximately $170 million is available for cash payments to Florida borrowers.According to Bondi's press release, all available funds will be distributed to those who file claims; none of this money will be returned to the banks or used by the states for any other purpose.

The servicers were sued by the U.S. and state governments for the practice of robo-signing documents pertaining to foreclosures. "Robo-signing" refers to the practice of routine mass-signing of documents without properly reviewing them to verify the authenticity of the information containedtherein

Bondi's release says payments will be a minimum of $840, but higher payments to each eligible consumer are expected.