U.S. Department
of Justice
National Creditor Settlements
United States Trustee Program’s Letter of Acknowledgment with USAA Federal Savings Bank
The United States Trustee Program entered into a letter of acknowledgment with USAA Federal Savings Bank (USAA) memorializing remediation of approximately $7.6 million in credits and refunds related to approximately 26,000 accounts for issues including failure to consistently comply with Fed. R. Bankr. P. 3002.1, inaccurate proofs of claim, improper implementation of certain bankruptcy plan provisions, and improper payment application.
USAA Letter of Acknowledgment and Exhibits [PDF - 883 KB]
United States Trustee Program’s Letter of Acknowledgment with Regions Bank
The United States Trustee Program entered into a letter of acknowledgment with Regions Bank (Regions) memorializing remediation of more than $950,000 to more than 6,200 consumers for issues resulting in inaccurate proofs of claim in bankruptcy cases.
Regions Letter of Acknowledgment [PDF - 1.84 MB]
United States Trustee Program’s Memorandum of Understanding with Nationstar Mortgage LLC (2020)
The United States Trustee Program entered into a memorandum of understanding with Nationstar Mortgage LLC (Nationstar) memorializing remediation of approximately $40.68 million in credits and refunds to over 20,600 borrowers for failures to provide timely and accurate notices of payment changes, notices of fees assessed, and final accountings of payments made during borrowers’ bankruptcy cases, as well as delayed escrow errors.
Memorandum of Understanding [PDF - 8.12 MB]
Department of Justice Press Release announcing the Memorandum of Understanding
Final Validation Report [PDF - 16.1 MB]
| Customers with existing mortgages may contact Nationstar with questions toll-free at 833-981-2112. |
United States Trustee Program’s Memorandum of Understanding with U.S. Bank National Association (2020)
The United States Trustee Program entered into a memorandum of understanding with U.S. Bank National Association (U.S. Bank) memorializing remediation of over $29 million in credits and refunds to approximately 26,000 borrowers for failures to provide timely and accurate proofs of claim, notices of payment changes, notices of fees assessed, and final accountings of payments made during borrowers’ bankruptcy cases, as well as payment application errors. Additionally, U.S. Bank waived approximately $43 million in fees and charges across its portfolio, including for borrowers in bankruptcy.
Memorandum of Understanding [PDF - 12.5 MB]
Department of Justice Press Release announcing the Memorandum of Understanding
Independent Compliance Report [PDF - 327 KB]
| Customers with existing mortgages may contact U.S. Bank with questions toll-free at 888-724-7362. |
United States Trustee Program’s Letter of Acknowledgement with PNC Bank, N.A. (2020)
The United States Trustee Program entered into a letter of acknowledgement with PNC Bank, N.A. (PNC) memorializing remediation of approximately $4.869 million in credits and refunds to over 14,000 borrowers for failures to provide timely and accurate notices of payment changes, notices of fees assessed, and final accountings of payments made during borrowers’ bankruptcy cases, as well as delayed escrow and payment application errors. PNC also provided additional remediation in the form of lien releases and debt forgiveness.
Letter of Acknowledgement [PDF - 2.17 MB]
Department of Justice Press Release announcing the Memorandum of Understanding
| Customers with existing mortgages may contact PNC with questions toll-free at 855-245-3814. |
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]
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]
Department of Justice Press Release announcing the Settlement
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]
Department of Justice Press Release announcing the Settlement
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.
The National Mortgage Settlement Web site
Department of Justice Press Release announcing the settlement
ABI Journal article of March 2012:$25 Billion Mortgage Servicer Settlement: Implications for the U.S. Trustee Program and the Bankruptcy System
The one-page information sheet about the settlement provided at Section 341 Creditor Meetings
[PDF - 81 KB]
El documento de una página que se proporciona en las reuniones de la Sección 341 de los acreedores
[PDF - 113 KB]
Frequently Asked Questions (FAQs) [PDF - 97 KB]
ABI Podcast - Features ABI Resident Scholar David Epstein talking with Clifford J. White III, Director, and Ramona D. Elliott, Deputy Director and General Counsel, of the U.S. Trustee Program, about the $25 billion mortgage servicing settlement