Mortgage Settlement Provides Relief for Ohioans

Settlement designed to aid Ohio borrowers affected by recent foreclosure crisis

President Barack Obama and former Ohio Attorney General and head of the Consumer Finance Protection Bureau Rich Cordray recently announced a joint federalstate settlement of $25 billion with five of the nations largest mortgage servicers over foreclosure abuses, fraud and unacceptable mortgage practices. As part of the settlement, the State of Ohio will receive an estimated share of $335 million designed to aid middle class Ohio borrowers affected by the recent foreclosure crisis. Specifically, Ohio borrowers who lost their homes between January 1, 2008 and December 11, 2011 because of service abuse would qualify for part of approximately $44 million in cash payments. Other measures taken under the settlement will help stabilize the real estate market, enabling more people to remain in their homes and reducing the number of foreclosures. This new settlement will bring relief to many Ohioans. The Mortgage Bankers Association recently reported that 4.95 percent of home loans in Ohio are in foreclosure, with another 9.1 percent of Ohio home loans behind in payments but not yet in foreclosure. A new report from Policy Matters, an Ohio think tank, finds nearly one-third of Ohio mortgage holders are under water, owing more than their houses are worth, and one in every six homeowners is either delinquent or in foreclosure. The numbers also suggest that foreclosure is not just a big city problem. While urban counties continue to lead the state in foreclosure filings, smaller and less urban counties are experiencing larger growth rates. Madison County in west central Ohio had the states highest foreclosure rate in the first half of 2011 according to RealtyTrac. The problem is larger than just those individuals in foreclosure. Foreclosure destroys neighborhoods, and the Federal Reserve reports that the collective net worth of Americans has taken a $5.5 trillion hit since 2007, mainly due to a decline in real estate which has lost $4.7 trillion in value, or 22 percent. Many economists believe
April 2012

our national recovery is tied to resolving the foreclosure crisis. For more information regarding the settlement, contact Rep Ted Celeste at (614) 644-6005 or the Ohio Attorney Generals office at (614)728-2279.

If you have a mortgage through one of the providers listed here, you should contact the provider immediately to see if you are entitled to a cash payment. Mortgage Provider Bank of America Citibank GMAC/Ally JPMorgan Chase Wells Fargo Contact Number (877) 488-7814 (866) 272-4749 (800) 766-4622 (866) 372-6901 (800) 288-3212

State Representative Ted Celeste Contact Information

Statehouse Office 77 South High Street Columbus, OH 43215 (614) 644-6005 Phone (614) 719-6963 Fax Send me an e-mail! District24@ohr.state.oh.us On the Web: http://www.house.state.oh.us/

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2011 State Representative Ted Celeste