United States and Consumer Financial Protection Bureau v. Provident Funding Associates, L.P.

Frequently Asked Questions

Helpful Hint: Using the general subject of your question may provide the best search results. For example, enter the word “submit” to find information about submitting your Participation and Release Form.

1. What is this settlement about?

The Consumer Financial Protection Bureau and the U.S. Department of Justice investigated Provident’s mortgage lending business. Based on this investigation, the Government claimed that: (1) Provident discriminated against African-American and Hispanic borrowers by allowing its brokers to charge them higher fees for mortgage loans originated from 2006 through 2011; (2) African-American and Hispanic borrowers paid higher broker fees than non-Hispanic White borrowers; and (3) Provident’s broker compensation system led to these higher fees based on race or national origin. Provident agreed to create a $9 million fund to repay eligible borrowers.

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2. Where can I learn more?

You can find a copy of the Consent Order on the Important Documents page. You can also visit the CFPB website at http://www.consumerfinance.gov/ProvidentSettlement or the DOJ website at http://go.usa.gov/chj84.

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3. Who is included in the settlement?

To be eligible for a settlement fund payment:

  • A borrower must have obtained a mortgage loan from Provident between January 1, 2006, and December 31, 2011.
  • At least one borrower on the mortgage loan must be African-American, Black, Latino, Hispanic, or of Spanish origin.
  • The borrower(s) must also have been identified by the Government as having been overcharged by Provident.
You do not need to have a current mortgage loan with Provident to be eligible for a payment. It does not matter whether your loan went into default or foreclosure.

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4. What do I do next?

The deadline to submit a Participation and Release Form was extended from December 27, 2016 to May 8, 2017. In order to take part in this settlement, you must have completed and returned a Participation and Release Form by May 8, 2017. The Participation phase of the settlement is now closed.

If you have already submitted a complete Participation Form, we expect checks will be mailed to all eligible, participating borrowers in late 2017. Eligible borrowers should promptly cash their checks.

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5. What is a Release of Claims? Why do I need to sign a Release of Claims?

By signing the Release of Claims, you are agreeing not to file a lawsuit against Provident related to your eligible loan with Provident and the claims in the Government’s complaint of discrimination by race and national origin in the charging of broker fees for mortgage loans originated by Provident. You are free to consult a lawyer of your choice, at your own cost, to discuss whether to take part in the settlement and to obtain more information on how the settlement might affect you financially.

You must have signed the Participation Form to verify your eligibility and to release the claims to take part in the settlement and receive a payment.

This form must have been submitted on or before May 8, 2017, in order for you to participate in the settlement.

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6. If eligible – how much will I be paid?

The first page of the letter in your Participation Packet shows the minimum payment that you will receive if you are eligible. Your final payment may be larger. When final payment amounts have been determined, you will get a check for the final payment amount. Payments to borrowers who completed and return a Participation and Release Form are expected to be mailed in late 2017.

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7. Who is the Garden City Group? Why did the Garden City Group contact me?

Because of the large number of borrowers affected by this settlement, Provident is administering this settlement through a settlement administrator, Garden City Group (“Provident settlement administrator”), which is contacting eligible borrowers and distributing payments. Garden City Group’s office is located in Seattle, Washington.

Garden City Group’s activities will be overseen by the Government. Provident is paying all of Garden City Group’s costs and expenses.

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8. Do I need to pay a fee for my settlement money?

No. There is no fee to take part in the settlement. Any mailings or phone calls that tell you to pay to take part in the settlement are a scam. Any person claiming to be related to the settlement other than from the Provident settlement administrator, Garden City Group, Provident, the CFPB, the DOJ, or your local U.S. Attorney’s Office is a scam. You should immediately report any possible scams related to this settlement to the Provident settlement administrator at 1-855-896-0632 (TTY: 1-855-409-7126) or email info@MortgageFeeSettlement-Provident.com.

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9. How will the settlement handle loans with multiple borrowers?

If there are co-borrowers on the same loan, each co-borrower must sign and return a separate Participation Form in order to receive his or her individual payment.

One co-borrower can choose to take part in the settlement even if another does not. If there are two eligible borrowers on the loan, each person is only entitled to receive one-half of the money due on that loan. The minimum amount any individual eligible borrower will receive is the amount stated in the enclosed letter.

The Provident settlement administrator and the Government will not mediate disputes between co-borrowers on whether to sign the Participation Forms or the amount of payment to which each co-borrower may be entitled.

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10. What if a borrower has died or is no longer competent to handle his or her own affairs?

If a borrower has died or is no longer competent to handle his or her own affairs, the amount that the borrower is eligible to receive may go to his or her estate or to the agent in charge of the borrower’s financial affairs. Please call the Provident settlement administrator at 1-855-896-0632 (TTY: 1-855-409-7126) for special instructions.

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11. What if I filed for bankruptcy after I got my mortgage loan(s) from Provident?

If you or your co-borrower filed for bankruptcy after obtaining an eligible mortgage loan from Provident, the settlement payment may affect the bankruptcy. This could happen even if that bankruptcy case has been closed. You should contact the attorney who represented you or your co-borrower in the bankruptcy proceeding to discuss whether the money you are eligible to receive may be an asset of the bankruptcy estate. If you or your co-borrower did not file the bankruptcy petition with an attorney and you still do not have one, you should tell the trustee who was assigned to the bankruptcy case that you are eligible to receive money as a result of this settlement.

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12. I no longer live at the address associated with this mortgage loan. Can I still participate in the settlement?

Yes. You may participate in the settlement regardless of where you currently live.

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13. When will I receive my settlement check?

After May 8, 2017, we will set the exact amount to be paid to all eligible, participating borrowers. We expect checks will be mailed to all eligible, participating borrowers in late 2017.

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14. Who do I contact for more information about this settlement?

The Provident settlement administrator should be able to answer your questions about this settlement. To contact the Provident settlement administrator, call 1-855-896-0632 (TTY: 1-855-409-7126), or send an email to info@MortgageFeeSettlement-Provident.com. If the Provident settlement administrator cannot answer your question, the Administrator will consult with the Consumer Financial Protection Bureau or the Department of Justice, which may contact you directly.

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