Attorney General Pam Bondi News Release
“This audit is critical to ensuring that the banks are honoring their commitment to homeowners under the National Mortgage Settlement,” stated Attorney General Pam Bondi. “My office will continue to ensure the banks’ compliance with the settlement, including meeting the enhanced mortgage servicing standards.”
“The reports I filed today show how much credit the banks have received toward their total consumer relief and refinancing obligations through the end of last year. For that reason, they are different from the gross dollar relief information I have shared in the past. The banks have made significant progress toward satisfaction of their total obligations, providing borrowers across the nation with much needed relief,” stated National Monitor Joseph A. Smith, Jr.
The Monitor reported $38.72 billion in gross dollar amounts provided to borrowers, which differs from the $15.35 billion credited amount certified in these reports. Under the NMS, different types of relief receive different amounts of credit, and much of the relief, including short sales, is not credited dollar for dollar. As a result, the gross dollar amounts are larger than the credited amounts as indicated in the reports.
The servicers’ consumer relief obligations are comprised of the following:
· Refinancing assistance for certain borrowers who are current on their payments but who would not qualify for traditional refinancing because their loan-to-value ratios are too high.
In addition to providing significant financial relief under the settlement, the banks are required to implement substantial changes to their mortgage servicing practices. Earlier this month, Attorney General Bondi announced that Bank of America and Wells Fargo have agreed to additional standards. To read more, follow this link: http://www.myfloridalegal.com/newsrel.nsf/newsreleases/B23F67DA1E8925ED85257BF8005E1456
The $25 billion national settlement was announced last year by Attorney General Pam Bondi, 48 states and the U.S. Department of Justice with the five largest mortgage servicers—Bank of America, JP Morgan Chase, Wells Fargo, Citibank, and Ally Bank, formerly GMAC.
Click here to access National Mortgage Settlement Monitor Joseph Smith’s statement to learn more about the credited relief amounts.
For more information regarding the report, visit MortgageOversight.com.