Home Loans and Support

Rhode Island AG Releases National Mortgage Settlement Progress

(Source: Attorney General Peter F. Kilmartin) – Attorney General Peter F. Kilmartin today reported on the progress made by the five mortgage service providers (Ally/GMAC, Bank of America, Citi, JPMorganChase, and Wells Fargo) at the center of the National Mortgage Settlement. According to the information reported by the five mortgage service providers, for the 4th quarter (October 1, 2012 through December 31, 2012), 810 Rhode Island homeowners have received financial relief, valued at $58,646,875. In addition, another 450 Rhode Island homeowners are in the process of receiving financial relief, including first lien modifications and refinancing.

Since the settlement took effect (for the period from March 1, 2012 through December 31, 2012), mortgage service providers have reported that 1,832 Rhode Island homeowners have been granted relief, valued at $131,077,950.

The information was provided as part of the formal report issued by the National Mortgage Settlement Monitor Joseph P. Smith. Read full report here: http://www.riag.ri.gov/documents/NationalMortgageSettlementReportThroughDecember2012.pdf

Among the highlights in the report, Rhode Island homeowners saw the following in relief for the period of October 1, 2012 through December 31, 2012:

159 homeowners received first lien modifications and principal reductions, with a total relief value of $20,022,596, or an average of $125,928.

Nine homeowners have received second lien modification forgiveness, with a total value of $198,565 and an average savings of $22,063 per homeowner.

280 homeowners completed second lien extinguishments, with a total savings of $14,987,721, for an average savings per homeowner of $53,528.

148 homeowners have completed shorts sales, with deficiencies forgiven, for $15,714,266 in relief, or $106,177 in relief per homeowner.

36 homeowners have received enhanced borrower transitional funds by the mortgage service providers, valued at $275,786, or $7,661 per homeowner.

66 homeowners have received deficiency waivers from the mortgage service providers, valued at $2,380,853, or $36,074 per homeowner.

83 homeowners have completed refinances, with the average interest rate reduction of 2.41 percent, valued at $3,679,704, or $44,334 per homeowner.

“Clearly, it is in the best interest of the mortgage service providers, homeowners and our neighborhoods to find solutions to keep people in their homes,” said Attorney General Kilmartin. “For the most part, the mortgage service providers have been very responsive to homeowners in need of assistance in restructuring their mortgages. We will continue to monitor the practices of the mortgage service providers to ensure they comply with the settlement and do not revert to the past bad practices that pushed the housing market to the brink.”

According to the report, Rhode Island homeowners saw the following in relief for the total program to date, for the period from March 1, 2012 through December 31, 2012:

250 homeowners received first lien modifications, principal reductions, with a total relief value of $30,840,733, or an average of $123,363.

498 homeowners completed second lien extinguishments, with a total savings of $24,964,236, for an average savings per homeowner of $50,129.

439 homeowners have completed short sales, with total deficiencies forgiven of $47,033,940, or an average of $107, 139 in relief per homeowner.

101 homeowners have received enhanced borrower transitional funds by the mortgage service providers, valued at $1,012,615, or $10,026 per homeowner.

168 homeowners have completed refinances, with the average interest rate reduction of 2.41 percent, valued at $6,863,170, or $40,852 per homeowner.

The $25 billion national settlement required the five mortgage service providers to provide relief to help struggling homeowners avoid foreclosure, brought badly needed reform to the mortgage servicing industry, ensured that foreclosures are lawfully conducted and penalized the banks for past misconduct.

“In addition to providing financial relief, the mortgage service providers must comply with a long list of customer service standards that guide the way they work with their customers. While the information is encouraging, I urge homeowners to continue to hold their mortgage service providers to the highest standards, and if anyone feels they are being mistreated, to contact our office immediately,” continued Attorney General Kilmartin.

Rhode Island homeowners’ estimated share of the settlement is:

$152 .6 million in benefits from loan term modifications, including principal reduction and other relief.

$3.1 million in cash payments to borrowers who lost their home to foreclosure and suffered servicing abuse from January 1, 2008 through December 31, 2011.

$7.3 million in refinance loans for homeowners under water.

$8.5 million direct payment to the Department of Attorney General to help fund consumer protection and homeowner foreclosure services.

To date, Attorney General Kilmartin has awarded grants to community organizations to fund mortgage foreclosure assistance and community outreach including:

$1.57 million grant to Rhode Island Legal Services for the Foreclosure Prevention Project to assist low and middle income families facing foreclosure;

$375,000 grant to the Housing Network of Rhode Island to support three key areas: homeowner counseling, homebuyer education and outreach;

$155,000 grant to Progreso Latino to expand the agency’s Better Living Project; and

$60,000 grant to HousingWorks RI to research and report on foreclosures and foreclosure prevention programs over the next three years.

The Progress Report from the Monitor of the National Mortgage Settlement can be found at www.mortgageoversight.com.

Source: Attorney General Peter F. Kilmartin


About Alex Ferreras

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