United States Trustee Program’s Memorandum of Understanding with Ditech Financial, LLC (2019)
The United States Trustee Program entered into a memorandum of understanding with Ditech Financial LLC memorializing approximately $35 million in remediation to more than 20,000 homeowners for (1) unnoticed loan modifications for borrowers in bankruptcy resulting in overpayments and improperly capitalized unnoticed fees and costs, (2) failure to run annual escrow analyses for borrowers in bankruptcy, and (3) failure to waive unnoticed tax and insurance advances following a borrower’s discharge.
Memorandum of Understanding [PDF - 210 KB]
Confirmation Order [PDF - 1 MB]
Final Independent Validation Report Summary [PDF - 168 KB]
Statement of the United States Trustee Program in Response to Ditech Financial LLC’s Validation Assurances [PDF - 117 KB]
Customers with existing mortgages may contact Ditech with questions by e-mail at USTBKInquiries@ditech.com or toll-free at 800-643-0202.
United States Trustee Program’s National Settlement with Wells Fargo Bank, N.A. (2015)
The United States Trustee Program entered into a national settlement agreement with Wells Fargo Bank N.A. (Wells Fargo) requiring Wells Fargo to pay $81.6 million in remediation affecting nearly 68,000 accounts for its repeated failure to provide homeowners in bankruptcy with legally required notices, thereby denying homeowners the opportunity to challenge the accuracy of mortgage payment increases.
Settlement Documents [PDF - 239 KB]
Final Compliance Report [PDF - 652 KB]
United States Trustee Program’s National Settlement with J.P. Morgan Chase Bank, N.A. (2015)
In March 2015, the United States Trustee Program entered into a national settlement agreement with JPMorgan Chase Bank, N.A. (Chase) requiring Chase to pay more than $50 million including cash payments, mortgage loan credits and loan forgiveness to over 25,000 homeowners who are or were in bankruptcy.
Settlement Documents [PDF - 1 MB]
Final Compliance Report [PDF - 2 MB]
The National Mortgage Settlement (2012)
On February 9, 2012, the Attorney General announced that the federal government and 49 states had reached a settlement agreement with the nation’s five largest mortgage servicers to address mortgage servicing, foreclosure, and bankruptcy abuses (the “National Mortgage Settlement”). On April 4, 2012, the United States District Court for the District of Columbia entered orders approving the settlement.
The National Mortgage Settlement was the largest consumer financial protection settlement in United States history. The National Mortgage Settlement settled certain state and federal investigations relating to mortgage servicing abuses including abuses in the bankruptcy process and provided for over $20 billion in direct consumer relief.