A landmark servicing settlement impacting the largest mortgage servicers in the U.S. has distributed more than $50 billion to date to homeowners impacted by loan servicing and foreclosure abuses.
The settlement funds have reached more than 620,000 homeowners, or roughly $81,000 per homeowner, the Department of Housing and Urban Development announced Tuesday based on research by the Office of Mortgage Settlement Oversight.
“One year in, it is clear that this historic settlement is making a profound difference on lives and communities,” said HUD Secretary Shaun Donovan. “We have far surpassed expectations in our efforts to assist struggling Americans.”
Mortgage servicers named in the settlement spanned the five largest U.S. mortgage companies: Bank of America, J.P Morgan Chase, Wells Fargo, Ally Financial and Citigroup. Forty-nine state attorneys general and the federal government signed the agreement.
The settlement comes after months of evidence gathered with regard to servicers foreclosing on homeowners without going through the legal process of measures to help those mortgage holders refinance their loans or become current on payments in order to stay in their homes.
“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,” Donovan said.
Written by Elizabeth Ecker