Banks say they have given $521M in mortgage relief in Washington

Banks say they have provided $521.3 million in mortgage relief to struggling home mortgage borrowers in Washington, according to a report released Mondaythat tracks the banks’ progress in meeting their obligations under a federal mortgage-fraud settlement.
Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC) and JPMorgan Chase & Co. (NYSE: JPM), along with Citigroup and Ally Financial, struck a deal with federal regulators and state attorneys general in Washington and 48 other states. The deal included a $25 billion settlement in response to charges that the banks engaged in robo-signing and other fraudulent activities related to originating and servicing mortgages.
Monday’s tally in Washington shows that the lenders covered by the settlement have met about 80 percent of their obligations to extend relief to struggling borrowers in Washington. Washington state’s share of the landmark $25 billion agreement involving the nation’s biggest mortgage lenders will be about $648 million.
The banks agreed to assist struggling home mortgage customers in a variety of ways that include reducing the principals, forgiving second liens, allowing borrowers to conduct short sales to avoid foreclosure and cutting loan interest rates.
The lenders in Washington wrote down $37 million in principal to nearly 390 struggling borrowers between March 1 and Sept. 30, according to a new report out by the Office of Mortgage Settlement Oversight.
The biggest impact on borrowers in Washington during the six-month period was in short sales, which offers struggling borrowers an alternative to foreclosure. The lenders completed more than 3,000 short sales, resulting in $307 million in relief for borrowers.
Bank of America provided $289 million in mortgage relief to 3,944 Washington borrowers, while Chase provided relief totaling $145 million to 1,783 borrowers. Wells Fargo provided $52 million in relief to 765 borrowers.
Overall, the banks and mortgage lenders have provided relief to 7,038 borrowers in Washington, for an average of $74,000 per borrower.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s