The Iowa attorney general's office says more than 6,000 Iowa residents who filed foreclosure payment claims will be sent checks of about $1,480 each.
The A.G.'s office says the payments will go to those who had a mortgage serviced by one of five participants in the National Mortgage Settlement.
They had to have lost their home to foreclosure between January 1st, 2008, and December 31, 2011, and submitted a valid claim.
The five servicers are Bank of America, Citi, JPMorgan Chase, Wells Fargo and Ally, formerly GMAC.
The Iowa payments are part of a $1.5 billion payment pool negotiated in a joint state-federal settlement.
Iowa Attorney General Tom Miller was the lead state negotiator and says 6,051 Iowa borrowers qualified and made claims.