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From Banking and Finance Law Daily, August 23, 2013

NMS Monitor issues final consumer relief data report

By J. Preston Carter, J.D., LL.M.

The Monitor for the National Mortgage Settlement (NMS), Joseph A. Smith Jr., has issued his fifth and final report detailing consumer relief data from the five banks that are parties to the settlement. The NMS is a Feb. 9, 2012, agreement, reached between the attorneys general of 49 states(excluding Oklahoma and the District of Columbia), the federal government, and five banks and mortgage servicers—Ally/GMAC, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo—that created new servicing standards, provided loan modification relief to distressed homeowners, and provided funding for state and federal governments.

Under the NMS, the parties to the agreement were required to provide the states and the Monitor with consumer relief data on activities conducted from March 1, 2012, to June 30, 2013. Smith said that he has verified the data provided by ResCap Parties (formerly GMAC) as fulfilling settlement consumer relief obligations and is evaluating the data provided by Bank of America and Chase for completion. “My professional firms and I also are reviewing consumer relief progress through the end of 2012 for the four banks that have not yet been credited. Our review process has been thorough and ongoing. I plan to release my findings in mid-September. We will then review the 2013 activities of Bank of America and Chase to determine if they have satisfied their obligations. I hope to make this determination by the end of the year,” Smith said.

Data. The Fact Sheet for the final progress report notes that since the Monitor has not credited all consumer relief activities yet, the numbers reported cannot be used to measure progress toward the banks’ $20 billion requirement, except for the ResCap Parties.

According to the program-to-date state-level data, reported from March 1, 2012, through June 30, 2013, 643,726 borrowers have benefited from some type of consumer relief totaling $51.33 billion, which, on average, represents about $79,742 per borrower.

The Q2 2013 state-level data shows that 37,133 borrowers benefited from some type of consumer relief totaling $2.657 billion, which, on average, represents about $71,552 per borrower.

Comment by Illinois AG. Lisa Madigan, Illinois Attorney General, said the NMS report shows that Illinois homeowners and assistance organizations have received more than $2 billion in total relief under the national foreclosure settlement. “The national foreclosure settlement has brought many forms of assistance to Illinois homeowners who continue to struggle in the wake of the foreclosure crisis,” Madigan said. “Whether through loan refinancing for borrowers, assistance for those who lost their homes or funding for organizations seeking to renovate vacant properties, we are working on many fronts to restore communities devastated by this crisis.”

Comment by Center for Responsible Lending. “While the data needs to be verified, it appears that the servicers have substantially exceeded the settlement’s goals in providing real assistance to borrowers at risk of foreclosure, including the forgiveness of more than $25.9 billion of borrower mortgage principal,” said Paul Leonard, California Director of the Center for Responsible Lending.

Companies: Ally/GMAC, Bank of America, Citigroup, JPMorgan Chase, ResCap Parties, Wells Fargo

IndustryNews: EnforcementActions Mortgages

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