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Banks give $10.6 billion in relief under mortgage settlement
The nation’s five largest banks granted $10.56 billion in mortgage relief to borrowers between March 1 and June 30, 2012, under the National Mortgage Settlement — a deal between 49 states and the federal government struck earlier this year to compensate for foreclosure abuses dating back to 2008.
Additionally, first lien principal reduction trials were offered and begun for about 28,000 homeowners, totaling approximately $3 billion of potential relief, according to a preliminary progress report issued by the Office of Mortgage Settlement Oversight, which is monitoring the $25 billion settlement.
The report states that the five banks — Bank of America, Wells Fargo, Citibank, JP Morgan Chase, and Ally Financial — have helped some 138,000 homeowners and have offered relief averaging $76,615 per borrower between March 1 and June 30. Nearly half of the total, $4.9 billion, comes from Bank of America. Ally Financial, the smallest of the lenders, has submitted just over $500 million in claims.
In California, some 43,000 homeowners have received relief from the five banks in the form of principal reduction on their mortgages or home equity loans, short sales and lowered interest rates, among other measures.