Nearly 310,000 Homeowners Benefit from National Mortgage Settlement

Since the signing of the agreement, nearly 310,000 homeowners have received monetary relief under the National Mortgage Settlement according to a progress report released on Monday by Joseph A. Smith, the settlement's independent monitor.  The five large mortgage servicers who signed the settlement have distributed a combined total of $26.1 billion in direct relief to those homeowners, an average of $84,385, each as compensation for the alleged loan servicing and foreclosure abuses address in the Settlement between them, 49 of the states' attorneys general, and the federal government.  The total includes both completed Consumer Relief activities and active first lien trial modifications.

The five servicers committed amounts to Consumer Relief obligations ranging from $200 million for Ally to $4.34 billion from Wells Fargo.  To meet their commitments the servicers can offer a variety of activities including first and second lien modifications, facilitation of short sales, deficiency waivers, anti-blight activities, refinancing, and forbearance for unemployed borrowers.

During the report period, from March 1 to September 30 2012, servicers accomplished the following:

• 21,833 borrowers successfully completed first lien modifications, receiving $2.55 in principal forgiveness, an average of $116,929 each.
• 20,967 borrowers are in an active first lien trial modification, the total principal value of which is $4.19 billion. The potential relief to borrowers is $135,223 each if the trials are completed.
• Second lien modifications and extinguishments were provided to 50,025 borrowers with an average modification or extinguishment of $55,534.
• Servicers refinanced 37,396 mortgages with an average unpaid principal balance of $120,398 yielding an average interest rate savings of 2.35 percentage points and a value over the life of the loans of $1.44 billion. Each borrower will save an average of $409 in payments each month.

• 113,534 borrowers had either a short sale completed during this period, or the lender accepted a deed in lieu of foreclosure, waiving all deficiencies.

• Through the various other Consumer Relief programs outlined in the Settlement documents, the Servicers provided $1.01 billion in relief to 39,637 borrowers. The average amount of relief of these other programs amounts to $25,383 per borrower.

https://www.mortgageoversight.com/wp-content/uploads/2012/11/Continued-Progress_11.19.12.pdf