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Some Utahns with home loans may be eligible for payments

Published August 22, 2014 6:32 pm

Deal • State had participated in settlement two years ago.
This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Utah homeowners who had home loans through Bank of America or Countrywide Financial may be eligible for compensation as part of a settlement announced Thursday by federal agencies.

Utahns with loans that were not part of a 2012 settlement and who had federally backed loans may be eligible for balance reductions or new loans for the low-income, said Wade Farraway, an assistant Utah attorney general.

For Utahns with loans backed by the Federal Housing Administration, Fannie Mae or Freddie Mac, "there may be some relief," he said.

Utah was part of the 2012 deal in which the five largest U.S. banks paid the state $23 million, and homeowners with loans from the previous four years were eligible for payments of about $2,000.

Consumer advocates told the Associated Press that only a small number of homeowners would be eligible for refinancing under the settlement announced on Thursday, and those who have already lost homes to a foreclosure or a short sale wouldn't likely benefit at all.