(LoanSafe.org) - Under the largest consumer financial protection settlement in history, Bank of America has assisted more than 366,000 borrowers nationwide through March 31st. The National Mortgage Settlement (NMS) was implemented in February 2012 among five of the nation's largest mortgage servicers.
Bank of America has now provided approximately $29.2 billion in relief to 320,000 customers through mortgage balance reductions and other consumer relief programs under the NMS. In addition, another 46,500 borrowers who are not delinquent and owe more on their mortgage than their home is worth, have received refinance offers and interest-rate reductions to help lower monthly payments.
According to the Office of Mortgage Settlement Oversight, since the NMS was established over 620,000 homeowners have received $50.63 billion in direct relief, or approximately $81,000 per borrower.
“One year in, it is clear that this historic settlement is making a profound difference on lives and communities. We have far surpassed expectations in our efforts to assist struggling Americans. Due to the efforts by 49 bipartisan state attorneys general and the federal government, hundreds of thousands of people are able to stay in their homes or avoid foreclosure, preventing the erosion of the social fabric of our communities," said HUD Secretary Shaun Donovan.
Bank of America's data report on NMS programs throughout March:
- Principal Forgiveness: BofA has offered more than 46,000 1st-lien modifications that may have included a principal reduction or forgiveness or previous principal (i.e. balloon payment). More than $7 billion in total mortgage balance reductions have been offered thus far.
- Home Equity Relief: More than 144,000 borrowers have received a junior lien modification or full extinguishment of a HELOC, accounting for more than $9.8 billion in relief.
- Other relief programs offered under the NMS: $13 billion in relief has been provided to nearly 130,000 borrowers, including 99,000 who qualified for a short sale under the settlement.
- Interest Rate Reductions: Approximately 46,500 borrowers have been offered an interest rate reduction under the NMS, and more than 20,000 have been finalized through March 31st.
Read more on the National Mortgage Settlement here.