Mortgage Settlement Monitor: Bank of America Complying at Fastest Pace

Mortgage Settlement Monitor: Bank of America Complying at Fastest PaceBank of America has moved at a faster clip than Wells Fargo, JPMorgan Chase and Citigroup in meeting obligations to help borrowers facing possible foreclosure under last year’s $25 billion National Mortgage Settlement.
Under his role to ensure compliance with the settlement, National Monitor Joseph A. Smith this week reported a total of $15.35 billion in consumer relief credits nationally as of Dec. 31, 2012.
The latest audit credits Bank of America with 97 percent of its required $7.6 billion in consumer relief as of the end of last year, Smith said.
JPMorgan Chase had delivered 76 percent of the $3.7 billion in assistance it had committed, Wells Fargo 55 percent of its promised $3.4 billion, and Citigroup 46 percent of its $1.4 billion in aid, Smith said.
Bank of America, Wells Fargo, Chase and Citi were the four largest among five mortgage customer-service providers, or mortgage servicers, to sign the settlement in early 2012 with 49 states and several federal agencies.
Smith also reported $38.72 billion in gross dollar amounts provided to borrowers, which is different that the $15.35 billion credited amount certified in the latest report.
Under the settlement, different types of relief earn different amounts of credit. Relief such as short sales are not credited dollar for dollar. As a result, the gross dollar amounts are larger than the credited amounts.
The NMS also requires the banks to implement extensive changes to their mortgage servicing practices. Earlier this month, Florida Attorney General Bondi announced that Bank of America and Wells Fargo have agreed to additional standards.

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