Mortgage settlement has provided New Yorkers with $625M in relief, Schneiderman says

TRD New York /
Nov.November 19, 2012 11:30 AM

The $26 billion mortgage settlement, reached in February between numerous state attorneys general and the country’s five largest mortgage servicers, has already sent about $625 million to residents of New York state, a report from New York State Attorney General Eric Schneiderman’s office shows.

Thus far under the settlement, 7,223 homeowners have received assistance, the statement says, with each borrower receiving an average of $86,600, which includes principal write-downs and “other relief” — referring to legal assistance and counseling on foreclosure prevention. 

“While there are still too many homeowners who are at-risk of foreclosure, today’s report is encouraging and reflects significant progress,” Schneiderman said today in the statement. “Thousands of New Yorkers are receiving relief from their mortgage servicers as a result of this settlement, but we must remain vigilant to ensure all eligible New Yorkers are getting the help they deserve and that the banks are being held accountable under the terms of the agreement.”

The settlement has drawn criticism over the fact that mortgages not serviced by the five major providers (Ally Financial/GMAC Mortgage, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo) are not covered, and because some have argued that principal reductions for distressed borrowers unfairly enrich those who may have acted recklessly. The settlement also does not cover second mortgages; many distressed American borrowers hold multiple mortgages. –Guelda Voien


Related Articles

arrow_forward_ios
Governor Andrew Cuomo (Getty; iStock)

Commercial evictions, foreclosures halted through October

Commercial evictions, foreclosures halted through October
Tillary Hotel at 85 Flatbush Avenue (Image via Kutnicki Bernstein Architects)

Isaac Hager’s Downtown Brooklyn hotel heads to foreclosure

Isaac Hager’s Downtown Brooklyn hotel heads to foreclosure
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
U.S. foreclosure filings in August jumped 11% as some states ended relief measures, though continued government intervention has prevented sharper increase (iStock)

US foreclosure filings jump as some states end relief measures

US foreclosure filings jump as some states end relief measures
FHFA director Mark Calabria (Getty; iStock)

Fannie and Freddie extend eviction, foreclosure moratorium

Fannie and Freddie extend eviction, foreclosure moratorium
Matthew Kramer, Victor Petrescu, Sebastian Jaramillo and Gov. Ron DeSantis (Getty, iStock) 

Eviction, foreclosure freeze in Florida delaying inevitable flood of cases

Eviction, foreclosure freeze in Florida delaying inevitable flood of cases
The threat of eviction hangs heavily above immigrant families who have lost work as a result of the coronavirus pandemic. (Getty)

Eviction bans don’t always protect the most vulnerable

Eviction bans don’t always protect the most vulnerable
Governor Andrew Cuomo and New York Chief Administrative Judge Lawrence Marks (Getty)

New York courts put the kibosh on foreclosures

New York courts put the kibosh on foreclosures
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...