More than 19,000 Georgians have received more than $1 billion combined in loan benefits under the National Mortgage Settlement program that the nation’s five largest banks signed over a year ago, according to the monitor overseeing the agreement.
The banks, however, came under fire this week, accused of not moving quickly enough to help borrowers who were affected by improper foreclosure practices and are covered by the landmark $25 billion agreement.
Under the settlement, Bank of America, Wells Fargo, Ally/GMAC, Citi and JP Morgan Chase are expected to reduce first- and second-lien principals, lower interest rates or provide payouts to borrowers who lost their homes unfairly to foreclosure between Jan. 1, 2008 to Dec. 31, 2011. The settlement was with the attorneys general of 49 states.
Lenders must regularly report their progress to Joseph Smith, the monitor of the National Mortgage Settlement.
Smith’s latest report shows Bank of America and Chase have provided the most relief in Georgia:
* Bank of America reported it has helped 11,392 Georgians with $591.6 million in loan relief efforts;
* Chase has helped 3,034 customers with $205.3 million in relief;
* Wells Fargo reported it helped 3,389 customers with nearly $131.9 million in relief;
* Citi said it has helped more than 2,126 with $89.2 million in relief. Georgia figures for Ally/GMAC were not available.
New York Attorney General Eric Schneiderman, however, this week accused Bank of America, Wells Fargo and the others of dragging their feet in implementing parts of the settlement, which was reached in February 2012.
“Bank of America has provided more relief under the National Mortgage Settlement than any other servicer,” the bank said in a statement to The Atlanta Journal-Constitution on Wednesday. “We take seriously and work quickly to address any problems brought to our attention.”
Wells Fargo, which said it has helped nearly 93,000 homeowners across the country, said its results represent only a fraction of the bank’s total foreclosure prevention and refinance activity in Georgia during that time.
Wells Fargo said first-lien modifications that were started and completed in Georgia during the period have reduced monthly payments by $726 on average, or nearly 42 percent. It said completed refinances have resulted in average principal and interest payment reductions of $295 per month.
“We fully support the rules established under the settlement and would welcome the opportunity to review the complaints from the attorney general, as we are committed to doing all we can to help our customers,” Wells Fargo said in a statement to the AJC. “We continue to work within the framework to monitor and report our performance and constantly evaluate opportunities for ongoing improvements in our processes.”
Schneiderman, according to the The Washington Post, said the New York attorney general’s office had received 339 complaints that Wells Fargo and Bank of America were taking more than 30 days to respond to requests to reduce interest rates and loan balances and not complying with the timeline requirements of the agreement.
Schneiderman said several states were reporting similar problems, although he would not identify them. Attorneys general in North Carolina and Illinois, however, also reported problems, according to the Post.
Georgia’s state attorney general’s office said any complaints are passed on to lenders. Spokeswoman Lauren Kane said the office receives calls “across the board” regarding loan servicers in the settlement. “The calls are forwarded to the respective bank to alert them of the issue so that it can hopefully be resolved,” Kane said.
Smith, a former North Carolina bank commissioner, said 621,712 borrowers nationally have received some type of consumer relief totaling $50.63 billion. The figures, however, have not yet been confirmed by his office, the monitor said.
The lenders were accused of routinely signing foreclosure-related documents outside the presence of a notary public and without really knowing whether information in the documents was correct. About $1.5 billion is being used to compensate borrowers who lost their home to foreclosure.
While the deadline to submit a claim form for the National Mortgage Settlement has passed, it is not the only assistance available to troubled borrowers. The following websites also contain information that may help borrowers not covered by the settlement www.makinghomeaffordable.gov or www.independentforeclosurereview.com.
Smith said he will have a more detailed report on the lenders’ compliance in June.
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