UPDATE: Q&A on the particulars of this settlement are laid out in the story titled, "Mortgage Settlement Particulars"

Many Arkansas families affected by the recent mortgage crisis may qualify for assistance funded by this week's settlement between attorneys general, federal agencies and the nation's five largest mortgage loan services.
 
Today, Attorney General Dustin McDaniel issued this special consumer alert to encourage Arkansans who might be affected by the actions of their banks to contact the Attorney General's office.
 
Thursday, he joined in a 50-state settlement agreement that will  provide more than $25 billion in relief nationwide to distressed borrowers and direct payments to states and the federal government—including nearly $40 million for Arkansas.
 
The agreement settles state and federal investigations finding that Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo routinely signed foreclosure related documents outside the presence of a notary public and without knowing whether the facts they contained were correct.  Both of these practices violate the law.  The settlement provides benefits to borrowers whose loans are owned by the settling banks as well as to all of the borrowers whose loans they service in the form of revised servicing standards.
 
McDaniel's Consumer Protection Division is standing ready to help homeowners navigate this complex agreement to see if they may benefit. Some homeowners will qualify for loan modifications such as principal reductions and others who lost their homes in foreclosure will qualify for direct financial relief. 
 
Consumers can contact our office directly. Our consumer counselors are available by phone to provide additional information or assistance.  Please contact us with questions at (501) 682-2341, (800) 482-8982, or oag@arkansasag.gov.
 
Consumers may also contact the banks directly with any questions or for information about their loans.
Bank Of America: (877) 488-7814
Citi: (866) 272-4749
JP Morgan Chase: (866) 372-6901
Ally/GMAC: (800) 766-4622
Wells Fargo: (800) 288-3212
 
Execution of the settlement will take place over the next three years.  During the next 30 to 60 days, an administrator will be selected by the states to oversee the logistics of the payments to be made to consumers who lost homes to foreclosure.  In addition, a separate monitor will be appointed to assure the servicers' compliance with the other relief programs and the revised servicing standards. 
 
Information is available to Arkansas consumers and homeowners on the web:
www.NationalMortgageSettlement.com
www.ArkansasAG.gov