The fifth and final progress report made by the five mortgage service providers and attorneys general nationwide under the National Mortgage Settlement ("the Settlement") was released today by Attorney General Peter F. Kilmartin and Settlement Monitor Joseph P. Smith. The data included in the report indicates that nationally the banks have or soon will meet their consumer relief obligations under the Settlement, providing 643,726 borrowers some type of consumer relief totaling $51.33 billion, which, on average, represents about $79,742 per borrower.
Locally, Attorney General Kilmartin reports the banks have provided 2,124 consumers relief totaling $153.5 million, which, on average, represents about $72,310 per homeowner. The report also shows that 317 homeowners have seen their mortgages refinanced, with an average rate reduction of 2.2 percent, and an additional 616 homeowners are in the process of refinancing. The banks have told the Monitor they continue to offer loan modifications and other consumer relief to eligible borrowers via their own programs.
The full report can be viewed here.
"Although this is the final progress report, and I am encouraged to see that the Settlement has made a measurable impact on Rhode Island homeowners and the housing market, this is not the end of our - or the banks' - obligations. The banks must continue to comply with the servicing standards outlined in the Settlement to ensure they do not fall back into their old ways of mistreating consumers," said Attorney General Kilmartin.
The National Mortgage Settlement Monitor is expected to release his second report on the banks' compliance with servicing standards by the end of this year.
The information is self-reported by the banks and will not be credited under the National Mortgage Settlement until the Monitor confirms their work; to date, only the ResCap Parties (formerly GMAC) has received credit. In May, both Bank of America and Chase asserted that they had completed their obligations. The Monitor is currently reviewing their assertions.