WASHINGTON Feb 21 Five top U.S. banks have
provided $45.8 billion worth of relief to struggling homeowners
under a 2012 federal-state settlement to resolve mortgage
abuses, according to a report released Thursday by a monitor of
The majority of the help provided by Bank of America
, JPMorgan Chase, Citigroup, Wells Fargo
and Ally Financial came in the form of short
sales, which are generally more favorable to homeowners than
foreclosures, and modifications on second loans.
The banks completed $19.5 billion in short sales and $11.6
billion in second lien modifications and extinguishments, the
Under a settlement reached in February 2012 with the Justice
Department, the Department of Housing and Urban Development, and
state attorneys general, the banks agreed to fund around $20
billion in consumer relief, with the majority of that earmarked
to help distressed borrowers stay in their homes.
The banks have not necessarily met their obligations yet
because the settlement only provides for partial credit for
certain kinds of relief, including short sales.
Just over 320,000 borrowers received some type of assistance
that helped them keep their homes, including a loan modification
or refinancing help, which totaled around $24.7 billion, or
around $76,500 per borrower, the report said.