This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Banks Cough Up $26.1 Billion in Mortgage Relief

NEW YORK ( TheStreet) -- Banks continued to make progress in meeting their obligations under the national mortgage settlement, the Office of Mortgage Settlement Oversight said in a report released Monday.

Banks have extended $26.1 billion in mortgage relief to over 300,000 borrowers between Mar 1, 2012 and Sept.30, according to reports submitted by each of the servicers to the state reports.

The nation's biggest mortgage servicers- Bank of America (BAC - Get Report), Citigroup (C - Get Report), Wells Fargo (WFC - Get Report), JPMorgan Chase (JPM - Get Report) and Ally Financial are required to provide upto $20 billion in mortgage relief, including principal reductions, forbearance, refinancing and other foreclosure alternatives to borrowers over a three-year period, as compensation for improper foreclosure practices followed in the wake of the crisis.

Banks do not receive full credit for every dollar of relief they extend, with some forms of aid such as principal forgiveness on loans receiving more credit than forbearance activities. So the $26.1 billion reported does not meet the full obligation of $20 billion under the settlement.
>>> On Tuesday, November 20 at 6pm ET, TheStreet will host a Trade Credit Insurance webinar with Todd Lynady, Senior Underwriter for Zurich in North America and Mike DeLuca, Senior Partner of One Source. Register now.

The data in the reports are yet to be validated and credited by Settlement Monitor Joseph Smith.

The bulk of the relief comes in the form of short sales, totaling $13.133 billion. Banks are increasingly pursuing short sales given long foreclosure timelines, while a rising housing market has also enabled short sale transactions to process more quickly.

Banks also offered more than $2.5 billion in first-lien principal forgiveness, $2.8 billion in second-lien extinguishment, $1.4 billion in refinancing relief. More than $4 billion active trial modifications are in process.

Bank of America reported last week that it has offered it has offered $15.8 billion in mortgage relief to customers as part of its obligation under the National Mortgage Settlement.

As of Sept 30, the bank had approved 30,000 homeowners for first lien principal reductions totaling $4.75 billion. About 5,800 had successfully completed their three-month trial and converted to permanent modifications.

The bank faces the biggest commitment under the settlement at $8.5 billion. The company is rushing to meet its obligation within the very first year. Banks get higher credit for reductions for first or second lien principal reductions or credited refinancing activities in the first year of the settlement.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $17.48 0.00%
C $54.21 0.00%
JPM $67.17 0.00%
WFC $55.39 0.00%
AAPL $117.81 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs