About 1,380 Mainers began receiving settlement checks Tuesday as a result of a national lawsuit over five large mortgage lenders' practice of hastily signing mortgage documents with little or no review, a practice dubbed "robo-signing."
The combined federal-state lawsuit brought about a $1.5 billion settlement between with Ally Bank (formerly GMAC), Bank of America, Citi, JPMorgan Chase and Wells Fargo.
In a press release, the Office of Maine Attorney General Janet Mills said the average settlement check for Maine residents will be approximately $1,480.
Those checks will go to Mainers who lost homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and had their mortgages serviced by one of the five lenders involved in the settlement.
The historic national settlement has its beginnings in Maine, through volunteer attorney Thomas Cox's pro bono work for Pine Tree Legal that set off the national investigation into lending practices of GMAC Mortgage Corp.
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