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News Summary: Checks going out in mortgage accord

Published on NewsOK Modified: April 9, 2013 at 7:19 pm •  Published: April 9, 2013

PAYMENTS IN MORTGAGE SETTLEMENT: Payments from 13 of the largest U.S. banks will start going out this week to millions of Americans who may have been wrongfully foreclosed on during the housing crisis.

BILLIONS IN CASH: A total of $3.6 billion in cash will be distributed to 4.2 million homeowners who lost their homes or were at risk of foreclosure in 2009 or 2010. Payments will range from $300 to $125,000. About 90 percent of borrowers whose mortgages were serviced by 11 of the banks will receive payments by the end of April. The last group of payments is expected in mid-July.

DIVVYING IT UP: A large share of those receiving payments, about 3 million borrowers, will each get only $300 or $400, according to data issued by two federal agencies. Around 80 percent of them will receive $1,000 or less. At the other end of the scale, $125,000 payments will go to 1,082 military personnel, who were foreclosed upon in violation of a law prohibiting foreclosures on active-duty service members, and to 53 borrowers who weren't in default on their mortgages but still lost their homes.