National Mortgage Settlement Update
National Mortgage Settlement Monitor, Joseph Smith, released the latest report last week on the progress made by the five major mortgage servicers – Bank of America, Citi, GMC/Ally, JP Morgan Chase, and Wells Fargo – that are part of the settlement. Like the previously released report, Mr. Smith notes in a statement that this new report is not required by the settlement, but is an attempt to be proactive in providing information to consumers about the progress of the settlement. The report covers the period of March 1st to September 30th.
Nationally, $26B in relief has gone to over 309k borrowers. Just over $13B of the relief has been in the form of short sales, and $2.55B has been (first lien) principal reductions. As a result, the settlement continues to be scrutinized by advocacy and other groups looking for the groundswell of principal reductions expected as a result of the settlement.
Locally, just over 13K borrowers have received $980M worth of relief, $485M of that in short sales versus $114M in principal reductions.
