U.S. Banks Provide Over $10 Billion in Loan Aid Under Settlement
The five largest U.S. mortgage servicers so far have provided about $10.6 billion in relief to troubled borrowers under the terms of a $25 billion legal settlement over abusive foreclosure practices, according to a report released today by a court-appointed monitor.
Most of that aid, $8.7 billion, came in the form of short sales, according to the report from the Office of Mortgage Settlement Oversight. Lenders including Bank of America Corp., JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC), also forgave $749.4 million in mortgage debt.
“There’s some evidence from this report that the banks are beginning to do some significant work on consumer relief,” said Joseph A. Smith Jr., the settlement monitor. “I’m not declaring victory, but I do think we’ve made a solid start.”
Yea, 8.7 billion in short sale credits. Which is credits from the deficiency that they would have most likely never of been able to collect anyway.