NEW YORK—New Yorkers with distressed mortgages received over $1.9 billion in consumer relief as part of the National Mortgage Settlement (NMS), according to a report released by the oversight office. Of that number, $448 million is for relief that is still in process.
The relief, which benefits 19,004 borrowers in New York State, was provided by the nation’s five largest mortgage servicers: Bank of America Corp., J.P. Morgan Chase and Co., Wells Fargo and Co., Citigroup Inc., and Ally Financial Inc.
The NMS was a landmark agreement reached in March 2012 between the country’s five largest mortgage servicers, 49 state attorneys, and the federal government to address widespread foreclosure and mortgage loan servicing abuses.
“As we approach the first anniversary of the landmark settlement, we are pleased that so many homeowners have been helped,” stated U.S. Acting Associate Attorney General Tony West in a press release.
Over 550,000 borrowers benefited from the settlement nationwide, with relief totaling $45.83 billion, according to the NMS report. The average amount of relief per borrower in New York was $92,743, compared to $82,668 nationwide. Over 94 percent of the total relief in New York came in the form of debt forgiveness, compared to 49 percent nationwide.
Of the five banks, only Ally has reached its settlement goal. Wells Fargo, meanwhile, has been relatively slow in fulfilling its settlement goal, providing just over $80 million in relief. In comparison, Chase has provided over $250 million, while having a similarly sized total commitment.
“We expect Wells Fargo to increase their consumer relief activity for struggling New Yorkers,” stated New York State Attorney General Eric Schneiderman in a press release.
Schneiderman’s office operates a Homeowner Protection Program for homeowners with troubled loans, which can be reached at (855) 466-3456.
