Bank of America has nearly paid all $7 billion in consumer relief for toxic mortgages – report

by Ryan Smith06 Dec 2016
Bank of America has paid nearly all of the $7 billion in consumer relief required by its settlement with federal and state authorities over toxic mortgage-backed securities, according to a HousingWire report.

The $7 billion is a portion of the total $16.65 billion settlement the bank made with the Department of Justice and other federal agencies, along with six states. According to Eric Green, the settlement’s independent monitor, Bank of America has so far paid out $6,803,697 in consumer-relief credit – 97% of its obligation under the settlement.

“Based on credit testing that is underway, it appears that Bank of America is on target to fulfill its obligations under the settlement agreement this year, well ahead of the four-year schedule,” Green said.

More than half of the loan modifications Bank of America has made as part of its consumer-relief obligation have been in designated Hardest Hit areas, according to HousingWire. The bank has made loan modifications and new loans in every state and the District of Columbia.

Green reported that the average principal reduction on loan modifications made so far under the agreement has been more than 50%, and the average loan-to-value ratio has dropped from 176% to 75%. And borrowers’ average monthly payment has been reduced by $599, a 37% reduction.

“This relief directly and materially assists homeowners struggling to afford to stay in their homes,” he said.

Related stories:

Government fraud case against Bank of America officially dead
Banking giant faces revived claims it violated racketeering laws


  • by Spelling Police | 12/6/2016 6:33:50 PM

    Spell check- there are several errors.

  • by Spelling Police | 12/6/2016 6:35:24 PM

    But a great article. Thanks for sharing.

  • by Harris Jonhson | 12/7/2016 11:10:56 AM

    Hello Everyone i am urgently looking for positive investment opportunities and running business partnerships to invest in i have available required investment capital and looking for any investment opportunities to invest in like a silent partner i need serious business investment opportunities with positive income generating value i am looking more on long term partnership investments which have good profit margin and need additional capital for expansion . I mind i am looking forward to receiving all kind of proposals big and small for i have close to $25,000,000 (Twenty Five Million United States Dollars ) Ready to invest in businesses which need expansion since am investing like a silent partner .We are not offering any mortgages we are investing our money in businesses .
    I need serious proposals only no middle men , no brokers and no time wasters , your response in sending me your proposals will be highly appreciated send me your proposals to my contact email directly for further communication and a face to face meeting is mandatory .
    Profound Gratitude
    Mr Harris mago


Is TILA-RESPA a good or bad thing long term?