Mortgage Settlement Provides More Than $220 Million in Relief So Far


Monitor's report outlines initial benefits to nearly 3,000 Marylanders

Baltimore, MD (August 29, 2012) – Attorney General Douglas F. Gansler announced today that distressed Maryland homeowners have received more than $220 million in relief from the National Mortgage Settlement as of the end of June. Figures from the initial progress report issued by the court-appointed Monitor of the National Mortgage Settlement show that 2,825 Maryland homeowners have received $224,413,625 in assistance from March 1 through June 30, 2012. Maryland's share of the $25 billion National Mortgage Settlement has been estimated at nearly $1 billion.

"This early snapshot shows we're off to a good start," said Attorney General Gansler. "We've done a lot of outreach and we want to make sure that Maryland families who are eligible for this relief are able to take advantage of it."

The benefits and assistance calculated in the report include home mortgage modifications, principal reductions, deficiency waivers, refinancing and short sale financial assistance. The monitor's report only provided a snapshot of relief received by June 30, 2012. Actual benefits received by Maryland consumers to date are expected to be higher than reported. The report does not include benefits and assistance that have been provided during the months of July and August, but it does indicate that more than $200 million in additional relief was in process as of June 30, 2012.

The report also does not address the one-time cash payments to borrowers who've lost their homes to foreclosure between January 1, 2008 and December 31, 2011 as the result of these banks' unfair servicing practices. Those borrowers have yet to be contacted by the claims administrator and should be receiving letters in the coming months. Depending on the number of borrowers who apply for this benefit, the payment is expected to be between $1,500 and $2,000. Accepting the payment does not waive any borrower's legal claims against their former lender.

"While there has been significant progress, we are still in the early innings of this effort," said Mark Kaufman, Maryland's Commissioner of Financial Regulation and a member of the Monitoring Committee overseeing the settlement. "Beyond the critical benefits in modifications and other assistance, we are also closely monitoring the implementation of the new servicing standards that define the way homeowners are treated in foreclosure. We remain diligent in pushing the servicers to comply with the terms of the agreement and in ensuring fairness in the treatment of homeowners."

The full progress report outlines more than $10.5 billion in reported consumer relief nationwide distributed by Ally/GMAC, Bank of America (Countrywide), Citi Bank, JPMorgan Chase (WaMu) and Wells Fargo (Wachovia). The figures provided in the report have been submitted to the Office of Mortgage Settlement Oversight by the five lenders. They will be audited by the Office of Mortgage Settlement Oversight to ensure their accuracy and applicability to the requirements of the National Mortgage Settlement.

Read the complete report, "First Take: Progress Report from the Monitor of the National Mortgage Settlement." (PDF document)

Read the report's Maryland statistics. (PDF document)

For more information on the report, visit mortgageoversight.tumblr.com.

For more information on the Mortgage Settlement, visit Attorney General Gansler's website.

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