By Shaila DeWan | The New York Times
The nation’s four largest banks — Bank of America, JPMorgan Chase, Citigroup and Wells Fargo — have more than fulfilled their financial obligations toward homeowners under a $25 billion nationwide mortgage settlement reached in 2012, the settlement monitor said on Tuesday in a final report.
A fifth major mortgage servicer in the settlement, Residential Capital, had already met its obligations. More than 600,000 households received some form of mortgage relief.
The bulk of the money in the settlement — intended to pre-empt an onslaught of lawsuits over the use of mass-produced and faulty documents in foreclosures — was to go directly to homeowners, primarily in debt relief. The banks also agreed to meet certain customer service standards meant to end the prolonged frustration on the part of many who sought help with burdensome mortgage terms.
