The first report card is in for the multi-state mortgage servicer settlement, and the results are ahead of schedule.
As of Dec. 31, 2012, a total of 554,389 have received $45.83 billion in benefits from the settlement.
The total includes 322,663 borrowers who received a permanent or trial modification, an extinguishment or refinancing assistance. The amount of benefit was $24.698 billion.
The results were discussed in Ongoing Implementation: A Report from the Monitor of the National Mortgage Settlement from the settlement’s independent monitor, Joseph A. Smith Jr. The numbers are based on self-reporting by the servicers and have not been confirmed by Smith.
The $25 billion settlement was reached in February 2012 between the biggest mortgage servicers and 49 state attorneys general. The settlement resolved allegations of faulty foreclosure practices.
Servicers completed 70,810 first-lien modifications that reduced their principal by an aggregate $7.409 billion. There were 25,114 borrowers in active first-lien trial modifications at the end of last year.
Second lien modifications and extinguishments totaling $11.594 billion have occurred on 170,339 loans.
Servicers have refinanced 56,400 mortgages, cutting interest rates by an average of 236 basis points.
Short sales or deeds in lieu were completed on 169,081 loans, providing $19.536 billion in relief.
Another $1.597 billion in relief to 62,645 borrowers was provided through various other relief programs.
Bank of America Corp., which committed to providing $8.574 billion in consumer relief, reported today that it has completed or approved almost $30 billion in “real and meaningful relief.”
Wells Fargo & Co.’s committed share was $4.337 billion, JPMorgan Chase & Co.’s portion was $4.212 billion, and Citigroup Inc. committed to $1.789 billion.
Smith said that he has certified that Ally Financial Inc. has reached its commitment of $0.2 billion. He added the Ally is in substantial compliance with its mandatory solicitation requirements.
Since May of last year, more than 5,700 complaints have been submitted through Feb. 1, with a majority being related to loan modifications or customer service issues. The pace of complaints have picked up significantly since November.
A statement from Housing and Urban Development Secretary Shaun Donovan indicated that initial settlement expectations have already been surpassed.
“Now that we have clear signs that our housing market has gained momentum, and it is clear that this settlement is providing some of the critical tools for that momentum to continue,” Donovan stated. “The job’s not done — and we will continue to watch the banks like hawks to ensure they live up to their obligations as they complete their consumer relief requirements and we measure their progress on implementing new and improved servicing standards.”
