Between March and June, more than 1,000 Connecticut homeowners received varying forms of mortgage relief under a $25 billion national settlement agreement with five big banks, with Connecticut assistance totaling $65 million, or $63,000 on average.
As of June 30, another $82 million of loan principal forgiveness modifications were in the pipeline for more than 800 Connecticut borrowers.
Bank of America Corp., Citigroup Inc., Ally Financial Inc., JPMorgan Chase & Co. Inc. and Wells Fargo & Co. agreed to the settlement with 49 states and the federal government.
“The settlement is off to a good start,” said Connecticut Attorney General George Jepsen, in a prepared statement. “Although encouraging, it is clear the process is only beginning, and that the servicers have much work ahead to fulfill their obligations under the settlement.”
Banks are offering homeowners first- and second-lien modifications; refinancing; forbearance for unemployed borrowers; and facilitation of short sales, in which the servicer agrees to a sale of a home for an amount less than the principal balance on the mortgage and waives the unpaid amount.
The settlement also requires the companies to improve the quality of service they provide customers, and to ensure the integrity of the documents they file in bankruptcy and foreclosure proceedings.
