Wilmington – Delaware Attorney General Beau Biden issued the following statement in response to today’s report on the implementation of the National Mortgage Foreclosure Settlement that showed that homeowners in the First State have already received $14.3 million in financial benefits from the participating banks:

“This report is a good first step in ensuring homeowners harmed by the housing crisis are receiving the real relief that they need and that the banks are required to provide,” Biden said. “The banks’ numbers indicate that nearly 300 Delaware homeowners have already been helped, but that number can be a lot higher. Delawareans who may be eligible for relief should not wait to be contacted by their mortgage-servicing banks. My office can help Delawareans find out if they are eligible and connect them with resources to apply for relief.” Biden is directing Delaware consumers to the Attorney General’s Mortgage Hotline: 800-220-5424.

The reported $14.3 million in consumer relief represents progress towards meeting the credits required by a settlement reached earlier this year between the federal government, states and the nation’s five largest mortgage-servicing banks (Bank of America, Wells Fargo, JP Morgan Chase, Ally and Citi). Overall, Biden’s office secured approximately $45 million for Delaware in the settlement, along with important new customer service standards and protections for members of our nation’s military. The $45 million comes in several pieces:

·         More than $32 million that banks will provide to current and former homeowners in the form of credits to reduce principal mortgage loans, extinguish second lien mortgage loans and waive deficiencies in short sales, and to provide refinancing to homeowners who are current on their mortgages but are otherwise unable to obtaining refinancing because they owe more than their homes are worth.  

·         Approximately $2,000 in payments to individual Delaware homeowners who have been foreclosed upon.  Homeowners will be eligible to receive this money without having to release the banks from any liability for wrongful foreclosure. 

·         $8.3 million that banks will pay to Biden’s office related to the multistate release of claims, as well as an additional payment of $2.5 million to settle a portion of the suit Biden filed related to the banks’ conduct related to the Mortgage Electronic Registry Service. This money will be used to fund homeowner assistance programs, educational outreach, support Delaware’s new mortgage mediation program, and fund ongoing and new civil and criminal investigations and cases related to the foreclosure crisis. 

The mortgage settlement monitor’s full report is available for review online at www.mortgageoversight.com.

Biden also reminded Delawareans that his Office of Foreclosure Prevention and Financial Education continues to be a resource for homeowners in need.   This office helps homeowners understand the foreclosure process, ensures that they know all of their rights and responsibilities, and links homeowners with Delaware’s HUD-certified housing counselors and other state and federal assistance that is available to them, including Delaware’s mandatory foreclosure mediation program.  Biden’s office will hold two foreclosure open houses tomorrow, Thursday, August 30, to provide information to homeowners about the foreclosure process, including possible alternatives to foreclosure and other housing-related issues. These events will be held at:

11:30 a.m. to 2:30 p.m.
Georgia House Restaurant
119 Main Street, Millsboro

5:30 to 8 p.m.
NCALL Research
336 Saulsbury Road, Dover

For more information about either event, homeowners should call the Attorney General’s Mortgage Hotline at 800-220-5424.

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