Covington, Kentucky

$33 Million in Mortgage Relief Used in Kentucky

 

Kentucky Attorney General Jack Conway today announced that the nation's five largest mortgage servicers continue to provide direct relief to homeowners in Kentucky and across the country as part of the national mortgage foreclosure settlement, according to this second post-settlement progress report released today by the independent settlement monitor.

In Kentucky, the second interim report shows that from March 1 through September 30, mortgage servicers from the nation's five largest banks provided $33.29 million in settlement-related relief to 944 Kentucky homeowners. Borrowers received an average of $35,268 in assistance. The various forms of relief provided to Kentucky borrowers included 57 completed first lien modifications, 211 completed second lien terminations, 290 completed short sales, 14 cash for keys at $1,500 each, 109 deficiency waivers, 107 completed refinances and six donated properties.

The report also shows that an additional 170 Kentuckians were able to refinance their homes through the settlement. These borrowers held mortgages that exceeded the current value of their homes. The average interest rate reduction was 3.64 percent. As of September 30, 2012, mortgage servicers were processing relief claims for 302 borrowers totaling $12.98 million.

The monitor also reports the receipt of more than 3,000 consumer submissions via the settlement oversight website and 350 submissions from professional advocates nationwide. In Kentucky, the monitor has received 31 consumer submissions and three from professional advocates. Attorney General Conway encourages the public and consumer advocates to submit any difficulties they've experienced with seeking remedies under the settlement.

"I am pleased that the banks are continuing to move in the right direction by providing substantial relief to homeowners in Kentucky and across the country," General Conway said. "It is important to note that we are only a few months into what is a three-year agreement and more relief is on the way for homeowners."

Nationally, the report found that more than 300,000 borrowers received some type of consumer relief during the same period totaling $26.11 billion. On average, each borrower received $84,384 in relief. The servicers will provide another quarterly update in early 2013.

The deadline for consumers to apply for the cash payment of up to $2,000 is January 18, 2013. Consumers must have faced foreclosure from 2008 to 2011 and had a loan with or serviced by one of the nation's five largest banks. To learn more about the settlement and how to apply for the cash payment, visit www.ag.ky.gov.

Mortgage Settlement History

Forty nine state attorneys general reached the historic $25 billion settlement with five of the nation's largest banks in February of 2012. Kentucky received $58 million under the settlement.

In July, General Conway announced the distribution of $19. 2 million in settlement money to agencies that create affordable housing, provide relief or legal assistance to homeowners facing foreclosure, redevelop foreclosed properties and reduce blight created by vacant properties.

More than $38 million is being allocated by the settlement administrator to consumers who qualify for refinancing, loan write downs, debt restructuring and/or payments of up to $2,000.

The five banks included in the settlement are: Bank of America, JP Morgan Chase, Wells Fargo, Citi, and Ally/GMAC. In order for consumers to receive direct assistance from this portion of the settlement, they must have a mortgage that is or was held by one of these banks.

A website has been established to provide consumers with information about the settlement at www.NationalMortgageSettlement.com . Banks will also be directly contacting consumers who qualify for payments or assistance. If consumers have questions, they may call:

  • Bank of America 1-877-488-7814
  • JP Morgan Chase 1-866-372-6901
  • Wells Fargo 1-800-288-3212
  • Citi 1-866-272-4749
  • Ally/GMAC 1-800-766-4622

The Office of the Attorney General set up a web page with information and answers to frequently asked questions about the settlement www.ag.ky.gov/mortgagesettlement .

Link to the Monitor's Progress Report http://mortgageoversight.tumblr.com/

PHOTO: Attorney General Jack Conway

SOURCE: press release