The Second Report From The Monitor for the Attorney General Settlement

The Second Report From The Monitor for the Attorney General Settlement

The Second Report From The Monitor for the Attorney General Settlement

Key Findings From The Attorney General Settlement

The Monitor for the Attorney General Settlement recently released his second report. For those who wish to read the entire report we provided a link here.

The full Settlement period covered in the report starts March 1, 2012 and ends September 30, 2012. The information provided to monitor Joseph A. Smith comes directly from the Servicers.

For a brief overview we highlighted some of the key findings.

Under the Settlement, the Servicers have committed to providing the following minimum Consumer Relief obligations:
• $200,000,000 for Ally
• $8,574,200,000 for Bank of America
• $4,212,400,000 for Chase
• $1,789,000,000 for Citi
• $4,337,000,000 for Wells
• 309,385 borrowers benefited from some type of Consumer Relief totaling $26.11 billion, which, on average, represents about $84,385 per borrower. This figure includes both completed Consumer Relief and active first lien trial modifications.
• 21,833 borrowers successfully completed a first lien modification and received $2.55 billion in loan principal forgiveness, averaging
approximately $116,929 per borrower

Consider the fact that much of these Consumer Relief obligations include trial modifications which often only serve the bank. The bank benefits as it gets two things from the borrower:

1-      Their money
2-      Their information

The bank makes no guarantees that they will provide a permanent loan modification and even if they do it may not be something that benefits the homeowner.

Additionally as we have noted in earlier posts about loan forgiveness, the servicers cherry pick from the loan in which to offer loan
forgiveness. Oftentimes, the services choose loans to offer principle reductions that will benefit the bank more than the homeowner. Fore example, they may offer a principle reduction to a “bad” loan that they have decided to write off entirely (like one that went into bankruptcy) instead of one where a homeowner is trying to save their home.

Additionally the report tallies the complaints from consumers (from mid-April to the end of October) about the issues they are facing from servicers.

California Leads Nation In Settlement Complaints

California led the nation in the numbers of complaints with 781. The report also tracks the complaints of professionals (attorneys, caseworkers, counselors and other professionals helping consumers with their mortgages) and California also led the nation in complaints with 47.

The Second Report From The Monitor for the Attorney General Settlement

The Second Report From The Monitor for the Attorney General Settlement

The Second Report From The Monitor for the Attorney General Settlement

Advertisements

Leave a comment

Filed under Banks, California, Loan Modifications

Leave a Reply

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

WordPress.com Logo

You are commenting using your WordPress.com 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 )

Google+ photo

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

Connecting to %s