WASHINGTON, D.C. – August 22, 2013 – (RealEstateRama) — 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 historic national mortgage foreclosure settlement. According to the fifth and final post-settlement report released today by the independent settlement monitor, 1,833 Kentucky homeowners received more than $63.7 million in settlement-related relief from Ally/GMAC, Bank of America, Citi, Chase and Wells Fargo through June 30, 2013. Borrowers each received an average of $34,771 in assistance.
Jack Conway in National News |
Jack Conway in Social Media |
The report compiles information provided by the servicers and has yet to be verified by the compliance monitor.
The various forms of relief provided to Kentucky borrowers included 178 completed first lien modifications, 576 completed second lien terminations, 436 short sales and 296 completed refinances.
“This settlement provided real relief to hundreds of Kentucky families, who otherwise may have lost their homes.” General Conway said. “I am proud that the total settlement relief provided to Kentuckians has exceeded our original estimate. The Office of the Attorney General has received some complaints from consumers that servicers are not meeting their obligations under the settlement. There are currently ongoing discussions with other Attorneys General about the best way to resolve these complaints to ensure that consumers receive assistance and that banks are upholding the servicing terms outlined in the settlement.”
Nationally, the report found that more than 642,000 borrowers received some type of consumer relief during the same period totaling $51.18 billion. On average, each borrower received $79,704 in relief.
–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. Thirty-eight million dollars is being allocated by the settlement administrator to consumers who qualify for refinancing, loan write downs, debt restructuring and/or cash payments of up to $2,000. Kentucky also received $19. 2 million in settlement money that was allocated to agencies in the Commonwealth that create affordable housing, provide relief or legal assistance to homeowners facing foreclosure, redevelop foreclosed properties and reduce blight created by vacant properties.
In addition to participating in the national mortgage settlement, General Conway filed suit in January 2013 against the Mortgage Electronic Registration Systems, Inc. (MERS) for violating Kentucky’s recording statutes by not recording mortgage assignments with County Clerks when mortgages were sold or transferred from one bank to another. Additionally, the lawsuit alleges that since MERS’ creation in 1995, members have avoided paying more than $2 billion in recording fees nationwide. Additional information about the MERS lawsuit is available at http://migration.kentucky.gov/Newsroom/ag/merscomplaint.htm .
To learn more about the mortgage foreclosure settlement, visit http://ag.ky.gov/mortgagesettlement
Link to the Monitor’s Progress Report: https://www.mortgageoversight.com/reports/monitors-updated-national-consumer-relief/ .
Contact:
Daniel Kemp
Deputy Communications Director
502-696-5659 (office
