Attorney General announces mortgage settlement, $1.2 billion in relief to consumers

Washington State Attorney General Bob Ferguson announced that the five banks covered under the National Mortgage Settlement have reported providing over $1.2 billion in consumer relief to Washington homeowners.

By Reporter Staff • August 26, 2013 12:39 pm
Washington State Attorney General Bob Ferguson.
Washington State Attorney General Bob Ferguson.

Washington State Attorney General Bob Ferguson announced that the five banks covered under the National Mortgage Settlement have reported providing over $1.2 billion in consumer relief to Washington homeowners. According to the unaudited bank reports, 16,377 Washington state borrowers have received an average of $74,763 in consumer relief as of June 30. This relief includes debt reduction loan modifications on first and second mortgages, lower interest rates on underwater mortgages, and transitional assistance for those unable to remain in their homes.

Washington’s numbers are part of the fifth and final progress report released by Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement. The purpose of the progress report is to share with the public the banks’ self-reported progress toward meeting their consumer relief obligations under the settlement. Smith is currently reviewing this latest information from the banks. At the conclusion of that review, he will issue a formal compliance report that will be filed with the Federal District Court for the District of Columbia.

“Homeowners deserve financial relief,” said Ferguson. “I am encouraged to see the Settlement has had measurable impact on thousands of borrowers and their communities in Washington state.”

While this report shows the banks have met their required relief obligations, more options are available to help homeowners.

“I highly encourage homeowners experiencing financial difficulties to contact a home counselor for free today,” said Ferguson.

If you are having problems paying your mortgage (or believe that you may in the future), or if you are behind on your payments and facing foreclosure, call a home counselor free of charge at 1-877-894-HOME (4663). They will help assist you in reviewing the many, many programs currently available to assist homeowners.

In February 2012, 49 state attorneys general and the federal government announced the joint state-federal $25 billion National Mortgage Settlement with the country’s five largest mortgage servicers. Those servicers are the Rescap Parties (formerly GMAC), Bank of America, Chase, Wells Fargo and Citi. Preliminary data shows that the servicers have substantially exceeded the consumer relief requirements of the settlement by providing more than $51 billion in direct settlement relief to borrowers nationwide, ahead of the March 2015 deadline.