Improved mortgage servicing standards have delivered more than $51bn of benefits to borrowers, it has been claimed.
The Center for Responsible Lending (CRL) has claimed 643,000 borrowers have benefited to the tune of $51.33bn as a result of mortgage servicers being held to higher standards. The CRL examined the final progress report issued by the Monitor of the National Mortgage Settlement, Joseph A. Smith, Jr., and said borrowers have received considerable relief to their mortgage obligations as a result of the settlement.
"Indeed, based upon the raw numbers (that have not yet been certified by the Monitor), it appears that the settling banks are very close to satisfying their obligations under the Settlement," the CRL said.
Of the relief offered to troubled borrowers, the CRL said $28.8bn was represented by home retention activities, including forgiving principal or interest payments for 393,742 borrowers, averaging $73,000 per borrower. Refinances also helped borrowers avoid difficulty, saving $2.9bn in borrower interest on 73,397 loans for an average saving of $40,000 per borrower.