Who qualifies for the National Mortgage Settlement?

In the largest consumer financial protection settlement in U.S. history, the nation’s five largest banks and mortgage servicers agreed to create to provide at least $25 billion in consumer relief, in addition to implementing new foreclosure servicing standards, as part of the National Mortgage Settlement.

Who will be eligible for help through the National Mortgage Settlement?

According to the U.S. Attorneys General, the funds will benefit the following: 

  • Homeowners needing loan modifications now. This includes first and second lien principal reducation. The mortgage servicers are required to put $17 billion of the funds toward principal reduction and other forms of loan modification relief.  
  • Borrowers who are current, but underwater. Borrowers will be able to refinance at the current interest rates — which are at a historic low. Up to $3 billion of the settlement funds will be put toward refinancing relief nationwide. 
  • Borrowers who lost their homes to foreclosure — with no requirement to prove financial harm and without having to release private claims against the servicers or the right to participate in the OCC review process. About $1.5 billion of the funds will be distributed nationwide to some 750,000 borrowers.

In addition, the new mortgage servicing standards will require better communication with borrowers, a single point of contact, adequate staffing levels and training, and appropriate standards for executing documents in foreclosure cases.

To learn more about the National Mortgage Settlement, and to view a list of Frequently Asked Questions, visit:

Jessica Horton is a former copywriter and community manager at MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.