The nation's largest banks have met the financial obligations of the $25 billion national mortgage accord, reports court-appointed settlement monitor Joseph A. Smith Jr.
The landmark agreement over foreclosure abuses required Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial to provide $20 billion in relief to borrowers. The servicers reduced the principal balance on primary mortgages in 37 percent of cases, which amounted to $7.5 billion worth of aid; while about 17 percent of relief, or $3.5 billion, went toward refinancing the loans of distressed homeowners. The banks also let borrowers sell their homes for less than they owed as well as turn over the deeds for the properties in lieu of foreclosure. "This report finally allows for a pretty complete picture of what the settlement actually achieved," said Smith.
Despite what is being seen as progress, some consumer advocates say problems persist.