Banks Report Extending Relief to More Than 300,000 Homeowners

Nov 19 - Joseph A. Smith Jr., monitor of the National Mortgage Settlement, has released a report that outlines the consumer relief activities the five banks that are parties to the settlement have conducted since March 1, 2012. The banks disclosed that they have extended more than $26.11 billion in gross relief to more than 300,000 borrowers, or roughly $84,385 per homeowner.

“The relief the banks have reported is encouraging,” said Smith. “But it is important to remember that no obligations will be met until I have reviewed, confirmed and credited them. I look forward to conducting that work in the coming months and reporting my findings to the public.”

“The report discloses that the banks have completed $21.92 billion in consumer relief to borrowers between March 1 and Sept. 30, 2012, and have an additional $4.2 billion still in active trial modifications,” said Smith. “Borrowers have received $6.339 billion in the form of either first or second lien principal relief. This information represents gross dollar amounts and, because in many cases relief under the Settlement is not credited dollar-for-dollar, cannot be used to evaluate progress toward the banks’ $20 billion obligation.”

About the Office of Mortgage Settlement Oversight
More information about the mortgage settlement is available at www.nationalmortgagesettlement.com. Further information about Joseph Smith and the Office of Mortgage Settlement Oversight is available at www.mortgageoversight.com.