The monitor over the National Mortgage Settlement, the $25 billion agreement with the five big lenders that turned a year old this month, conceded that borrowers are still experiencing serious issues with the banks, such as dual-tracking, poor communication and mortgage modification hassles.
Housing counselors in California who help guide struggling homeowners away from foreclosure say that banks are violating several consumer protections mandated by the $25 billion National Mortgage Settlement reached more than a year ago.
Subsidiaries of Bank of America and Morgan Stanley have agreed to pay more than 300 military service members whose homes were unlawfully foreclosed more than $39 million in relief that covers violations of the Servicemembers Civil Relief Act, Justice Department officials said Friday.
The postcards from Rust Consulting informing eligible borrowers of a pending payment for foreclosure “deficiencies” are real and not part of a scam or junk mail, Oklahoma’s attorney general said in a special alert after getting calls from confused recipients.
The official monitor over the National Mortgage Settlement should provide much more data on the impact of foreclosure relief to determine which neighborhoods are being left without meaningful resolution, say scores of consumer advocacy groups.
Nearly 1.5 million U.S. properties were in the foreclosure process or bank-owned in the first quarter of 2013, up 9 percent from the first quarter of 2012, according to RealtyTrac’s first such analysis.
The top U.S. housing official has come to the defense of the National Mortgage Settlement, calling it “the most robust principal reduction program in our nation’s history,” and deflecting criticism tied to the reliance on short sales and 2nd-lien assistance by the big banks responsible for correcting wrongful foreclosure actions.
The National Mortgage Settlement has been ripe for ripping for consumer advocates, who contend that most of the relief is not helping foreclosure victims of “robo-signing” and other improper practices stay in their homes.
Consumer complaints regarding pending relief from the five lenders that are part of the $25 billion National Mortgage Settlement have surged 50 percent since November, reaching about 830 complaints per month, according to the official overseer of the landmark settlement.
Checks to borrowers who submitted claim forms as part of the National Mortgage Settlement will likely be mailed out by “mid-year 2013,” according to a brief update on the settlement’s website.