The Federal Government through the Office of the Comptroller of the Currency (OCC) announced a multi-million dollar settlement with EverBank, a Florida-based mortgage loan servicer accused of resisting new homeowner protections implemented under the landmark National Mortgage Settlement of 2011.
The National Mortgage Settlement was garnered between 49 states and the nation's 5 largest banks offered 'across the board' guarantees such as guidelines for modification reviews and cash payments to victims of wrongful foreclosure.
EverBank who had failed to comply with the national settlement's broad settlement terms, has agreed to pay approximately $37 million in cash payments to more than 32,000 eligible mortgage borrowers.
Borrowers whose homes were in any stage of foreclosure in 2009 and 2010 with EverBank will receive cash compensation. Payments will range from $1,050 to $125,000 plus equity, where appropriate.
EverBank has also agreed to pay an additional $6.3 million to organizations that provide housing counseling to low to moderate income households.
Eligible borrowers will be contacted directly by a third-party paying agent for the cash benefits and will receive compensation whether or not they filed a request for an independent review of their foreclosure handling. The Independent Foreclosure Review was also a program initiated in connection with the National Mortgage Settlement.
Borrowers do not need to take further action to be eligible for compensation and additional information about payments to eligible borrowers will be announced in the near future.
EverBank had been under a ‘cease and desist’ order for unsafe and unsound practices in mortgage servicing and foreclosure processing. The settlement arises from their alleged violation of that order in their foreclosure practices.
EverBank has pledged to evaluate each eligible borrower still in the process of foreclosure for a new loan modification and will establish a special complaint process to resolve borrower complaints regarding credit report errors.
Borrowers who accept a payment pursuant to the settlement will not be prevented from taking any action related to their foreclosure in the future.