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California Says Administrator Will Begin Foreclosure Refunds

A national administrator will begin processing refunds for California borrowers who lost their homes to foreclosure as part of a $25 billion nationwide mortgage-foreclosure settlement.

Claim forms will be sent to about 432,584 California borrowers whose homes were foreclosed from Jan. 1, 2008, to Dec. 31, 2011, and may be eligible for a settlement payment, California Attorney General Kamala Harris said today in an e-mailed statement.

The national settlement administrator mailed notification postcards to eligible borrowers last week, Harris said. The deadline for all claims is Jan. 18.

The refunds stem from the $25 billion settlement that Harris and officials with 48 other states reached with Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. to end a probe of abusive foreclosure practices stemming from the collapse of the housing bubble.

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