Magazine article Mortgage Banking

Latest AG Settlement Report Shows 621,712 Borrowers Helped through Q1 2013

Magazine article Mortgage Banking

Latest AG Settlement Report Shows 621,712 Borrowers Helped through Q1 2013

Article excerpt

* In the latest reports submitted by the five big banks subject to the National Mortgage Settlement covering the period of March 1, 2012 through March 31, 2013, the data shows 621,712 borrowers have benefited from some type of mandated consumer relief. The relief delivered during this period totaled $50.63 billion, which represents an age of $81,437 per borrower. That dollar amount includes both active first-lien trial modifications as well as completed relief actions.

The results were compiled from disclosures submitted by the five large banks subject to the settlement. The relief reported was calculated from gross dollar relief provided to borrowers and includes short sales, trial and permanent modifications, and refinancing assistance.

The Office of Mortgage Settlement Oversight (OMSO) said that much of the dollar amounts of relief disclosed in this latest report would not be credited dollar-for-dollar against the required $20 billion in consumer relief the banks must comply with under the settlement.

The reported figures will have to be certified and proper amounts credited by the OMSO against the banks' required totals under the settlement.

To date, only Residential Capital (a mortgage subsidiary of Ally Financial Inc.) of the five banks that are party to the settlement has been certified as meeting its required consumer-relief totals.

But with this latest batch of numbers, two of the remaining banks (Bank of America Corporation and JPMorgan Chase & Co.) indicated they had met their consumer-relief totals. The official word on that will have to come from Joseph J. Smith Jr., monitor of the NMS. Wells Fargo separately reported it had completed 90 percent of its required consumer relief as of the March close of the latest reporting period.

The banks deliver their data under the settlement agreement to each of the states that were party to the settlement reached with state attorneys general, with copies going to the NMS monitor and the monitoring committee. …

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