More than 10,000 Maryland residents who had their homes forclosed on will start receiving checks this week after a multi-state settlement with five mortgage companies.
All told, 10,740 Maryland residents will receive a check following the National Mortgage Settlement. That means anyone in Maryland who submitted a claim after having their mortgage serviced by one of five companies—Bank of America, Citi, JPMorgan Chase, Wells Fargo, or Ally/GMAC—and then lost their home through foreclosure between 2008 and 2011 will receive a check for just under $1,500.
Attorney general Doug Gansler says that amount in no way fully compensates those who lost their homes, but it is higher than the initial settlement figure of $840 per person. Gansler adds anyone who receives a check from the settlement is still able to receive additional compensation through a separate lawsuit or other claims.
The National Mortgage Settlement was the result of allegations that those mortgage servicers—the five largest in the U.S.—engaged in illegal "robo-signing" of documents and a variety of other abuses.