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BofA Touts Settlement Progress

Mortgage News

While Bank of America Corp.‘s share of the multi-state servicer settlement was less than $12 billion, its borrowers have seen nearly $30 billion in relief so far.

The country’s biggest mortgage servicers reached a $25 billion settlement with 49 state attorneys general in February 2012. The agreement resolved allegations of faulty foreclosure practices.

Bank of America’s portion of the mortgage servicer settlement was $11.8 billion, according to previously reported data.

But on Thursday, the Charlotte, N.C.-based company reported that it has completed or approved almost $30 billion in “real and meaningful relief.”

Around 330,000 borrowers have benefited from its actions, while another 40,000 customers have been offered life-of-loan interest rate reductions.

The federal monitor of the settlement, Joseph A. Smith Jr., will subsequently determine how credit BofA will receive for its activities.

According to BofA, it has provided more than $7 billion in principal reduction on 47,000 first liens.

In excess of $9.8 billion in principal reduction has been provided on around 144,000 home-equity loans and home-equity lines of credit.

More than 7,500 borrowers have had their interest rate reduced. Over 40,000 borrowers have been offered rate reductions.

In addition, another 142,000 borrowers have received other benefits, including almost 99,000 short sales that provided around $11.8 billion in relief.

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