Bank of America Settlement for Mississippi
On August 20, 2014, the United States Department of Justice, six states and Bank of America reached an agreement to settle claims that Bank of America, Countrywide, Merrill Lynch and First Franklin violated federal and state laws in connection with the packaging, origination, marketing, sale, structuring, arrangement and issuance of residential mortgage-backed securities and collateralized debt obligations.
Under the Settlement Agreement, Bank of America is required to (i) pay $9.16 billion in direct payments to federal agencies and six states; (ii) provide $7 billion in Consumer Relief; and (iii) provide $490 million for the payment of consumer tax liability as a result of such Consumer Relief.
Consumer Relief may include first lien principal forgiveness, principal forgiveness of forbearance, first lien forbearance (payment forgiveness), second lien extinguishments, junior lien forgiveness and extinguishment, credit for purchase money loans, community reinvestment and neighborhood stabilization.
Programs that help fund legal aid to the poor through Interest On Lawyers’ Trust Accounts (IOLTA) will benefit as a result of the $16.65 billion Bank of America settlement with the United States. Each state IOLTA program will get $200,000, then the rest of the $30 million will be allocated based on the percentage of the state’s population living in poverty.
North Mississippi Rural Legal Services (NMRLS) received a portion of this IOLTA funding and is proud to offer foreclosure prevention, loan modification, loss mitigation and other options to assist families to remain in their homes. NMRLS, following the guidelines established by the Making Home Affordable Program will provide legal assistance to help struggling homeowners at risk of foreclosure by working with their lenders to lower monthly mortgage payments. The Making Home Affordable Program helps homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy.
Eligible homeowners can lower their monthly mortgage payments and get into more stable loans at today’s low rates. And for those homeowners for whom ownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure. Additionally, in an effort to be responsive to the needs of today’s homeowners, there are also options for unemployed homeowners and homeowners who owe more than their homes are worth.
North Mississippi Rural Legal Services has a toll free hotline for Mississippi homeowners and it will provide information about the Making Home Affordable Program as well as other valuable information. Callers will be assisted in completing the steps necessary to receive help through the program. Through the hotline, homeowners will receive free legal counsel, advice and representation.
For more information or to apply call NMRLS toll free HOTLINE
FYI: Saving The Home: Preventing Foreclosure with
The Make Home Affordable Program
Other Valuable Information
- To determine if you are eligible for a Making Home Affordable program, use this tool: http://www.makinghomeaffordable.gov/get-started/finding-the-right-program/Pages/default.aspx
- To learn more about the different options available under Make Home Affordable, click this link: http://www.makinghomeaffordable.gov/programs/Pages/default.aspx
- To read answers to some Frequently Asked Questions, click here: http://www.makinghomeaffordable.gov/about-mha/faqs/Pages/default.aspx
- If Fannie Mae or Freddie Mac owns your loan, you may be eligible for programs designed to make your mortgage more affordable. Use this lookup tool: http://www.fanniemae.com/loanlookup/ and https://ww3.freddiemac.com/corporate/