Banks Report More than $100 Million in Relief Provided to Massachusetts Borrowers to Date Under National Mortgage Settlement
Settlement Monitor Issues First Report Showing Progress Underway; Banks Report $10 Billion in Relief Nationwide Through End of June
BOSTON — Massachusetts’ borrowers have already been provided $103 million in total relief under the national mortgage settlement according to the first report by the settlement’s monitor, a number higher than any other New England state. A total of 1,374 homeowners were reportedly provided relief for an average of $75,057 per homeowner. The banks also reported more than $10.5 billion in consumer relief nationwide between March and June of this year. The full report can be found here as well as at the Office of Mortgage Settlement Oversight.
“We have seen significant relief beginning to flow to Massachusetts’ borrowers as part of the national settlement and we must continue that progress,” said Attorney General Martha Coakley. “Our ability to work directly with homeowners through our HomeCorps program will help ensure that Massachusetts’ borrowers are first in line for this relief. With this comprehensive effort to prevent unnecessary foreclosures, we believe Massachusetts will be in a strong position to rebound from the foreclosure crisis.”
The report also suggests more relief in progress, with the five banks reporting 619 additional borrowers in Massachusetts have been offered and approved for loan modifications, including principal reduction, through June 30. In Massachusetts, those offers include $63.5 million in potential additional relief, an average of $102,659 per homeowner.
The numbers were self-reported by the banks and contain raw or aggregate numbers that cannot yet be used to assess the banks progress toward meeting its $20 billion dollar obligation under the terms of the court ordered settlement agreement. Because the servicers do not receive dollar-for-dollar credit for most forms of homeowner relief, they will actually provide much more relief than the $20 billion required by the settlement. Under terms of the national settlement with Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and GMAC/Ally, the banks were ordered to provide an estimated $257 million worth of mortgage relief across the Commonwealth and an estimated $14.6 million in cash payments to Bay State borrowers in post-foreclosure relief.
AG Coakley also obtained $44.5 million in funds for Massachusetts as part of the national settlement. A significant portion of these funds is being used to support the AG’s first-in-the nation foreclosure prevention and borrower support initiative called HomeCorps. The goal of the Attorney General’s HomeCorps is to mitigate future impacts of the foreclosure crisis by providing advocacy to distressed borrowers in Massachusetts facing foreclosure and includes a comprehensive three-part borrower support and referral initiative. Those homeowners facing foreclosure or with questions about the settlement can contact the HomeCorps hotline at (617) 573-5333.