The Office of Mortgage Settlement Oversight (OSMO) has issued its first progress report on how the five financial institutions that signed the National Mortgage Settlement are meeting their obligations.
‘The report discloses that the banks have granted $10.56 billion in consumer relief to borrowers between March 1 and June 30,’ says Joseph A. Smith Jr., monitor of the settlement. ‘Additionally, first lien principal reduction trials were offered and begun for about 28,000 homeowners, totaling approximately $3 billion of potential relief. This information is self-reported and has not been confirmed by the professional firms working with me. Further, it represents gross dollar amounts and cannot be used to evaluate progress toward the banks' $20 billion obligation.
‘As of July 5,’ Smith adds, ‘the servicers reported to me that 56 servicing standards have been incorporated into their business processes. Implementation of the mortgage servicing standards outlined in the settlement can be an important contribution to reform of the mortgage finance system. More hard work remains as the banks work to meet their obligations. My colleagues and I look forward to that work and to keeping policymakers and the public informed of our progress.’
The OSMO's full report is available online.