Big Banks Close to Satisfying Obligations Under Mortgage Settlement, Report Says

October 17, 2013
Washington Post 
mortgage lending news

Despite scrutiny over how they have handled the process, the country's biggest banks appear to be on the brink of satisfying their obligations to aid struggling homeowners under national settlement to remedy flawed foreclosure practices.

The court-appointed monitor of the $25 billion deal this week confirmed that Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup are more than 50 percent finished with their requirements to offer borrowers help in the form of loan forgiveness, short sales, forbearance, or refinancing; while Ally Financial has already completed its obligations.

While applauding the progress, some consumer advocates say not enough has changed. "The financial part of the settlement was important to the extent that it promoted the notion that principal reduction was a good thing, but issues around servicing have not been resolved," said National Association of Consumer Advocates executive director Ira Rheingold.

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