The first progress report on the impact of the $25 billion mortgage settlement struck by the nation’s five biggest lenders was released today, by Joseph Smith, who is charged with overseeing the settlement. He reported that banks had provided some $10.56 billion worth of forgiveness to 137,846 borrowers between the time the settlement went into effect March 1 and the end of June (see video above).
About $8.7 billion of that total came in the form of short sales, while about $749.4 million of assistance arrived in principal reductions. Though Bank of America was responsible for $4.8 billion of the short sales it had not contributed to any of the principal reduction totals. Wells Fargo led the way in that category, with a total of $216.9 million in reductions.
Bank of America also hadn’t contributed to any of the additional $348.9 million that banks had given to forgive deferred principal from pre-settlement permanent modification of first lien mortgages. Citi led the way in that category with $284 million of the activity. The remaining $830 million of relief doled out thus far came in the form of second lien forgiveness, refinances and other programs. In addition to Wells Fargo, Citi and BofA, JPMorgan Chase and Ally Financial were also held accountable under the settlement.
New York has recieved $198.5 million worth of relief affecting 2,160 borrowers, the report found. – Adam Fusfeld