Big banks nearing consumer-relief targets under AG settlement.

Position:NEWS ROOM
 
FREE EXCERPT

* The top-five largest mortgage servicers are nearing completion of their obligations to provide the consumer relief agreed to as part of the multibillion-dollar National Mortgage Settlement. That was the assertion in a new interim report filed with the courts on Oct. 16 by Joseph A. Smith Jr. Smith is the official monitor of the settlement that was negotiated with state attorneys general (AGs) and the federal government.

The Office of Mortgage Settlement Oversight (OMS0) is charged with verifying the consumer-relief sums reported by each of the five large servicers under the terms of the $25 billion settlement.

In the latest report, the monitor outlines the amounts that the banks have earned credit for providing and the monitor has certified for consumer relief and refinancing assistance through Dec. 31, 2012.

Of the five banks subject to the settlement, ResCap has already been certified by the settlement monitor as having satisfied both its consumer-relief and refinancing obligations.

In the category of required consumer relief under the terms of the settlement, Bank of America (BofA) has met 97 percent of its obligation, Chase has met 76 percent, Wells Fargo has met 55 percent and Citibank has met 46 percent.

OMSA's Smith filed the interim credit report on Oct. 16 with the U.S. District Court for the District of Columbia.

Smith said in a press release, "The banks have made significant progress toward satisfaction of their total obligations, providing borrowers across the nation with much-needed relief."

He added, "Since the beginning of this year, each bank has asserted to me that it has satisfied its consumer-relief and refinancing obligations. My colleagues and I are now reviewing that work and will submit final reports to the court when and if I determine that a bank's...

To continue reading

FREE SIGN UP