Home » Relief for Kentucky homeowners tops $55 million under national mortgage settlement

Relief for Kentucky homeowners tops $55 million under national mortgage settlement

FRANKFORT, Ky. (Feb. 25, 2013) — 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 settlement, according to Attorney General Jack Conway.

Bank Foreclosures ListingsMore than 1,500 Kentucky homeowners received more than $55.5 million in settlement-related relief from Ally/GMAC, Bank of America, Citi, Chase and Wells Fargo through December 31, 2012, according to the third post-settlement report released Thursday by the independent settlement monitor. Borrowers received an average of $35,534 in assistance.

The report also shows that as of December 31, 2012, mortgage servicers were processing additional relief claims for Kentucky borrowers totaling more than $2 million, bringing Kentucky’s total consumer relief to $57.5 million. 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 121 completed first lien modifications, 438 completed second lien terminations, 415 short sales and 279 completed refinances.

“This report shows that in the year since we announced the landmark mortgage settlement, a substantial amount of consumer relief has reached struggling homeowners,” Conway said. “I am pleased that a large percentage of the settlement resulted in people being able to keep their homes.”

Nationally, the report found that more than 550,000 borrowers received some type of consumer relief during the same period totaling $45.83 billion. On average, each borrower received $82,668 in relief. These figures include first lien trial modifications, as well as completed 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, 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 here.

To learn more about the mortgage foreclosure settlement, visit www.ag.ky.gov/mortgagesettlement.