Thursday, August 16, 2012

Banks send first mortgage settlement data to monitor

Bank of America, Wells Fargo and the three other big banks involved in the $25 billion state and federal mortgage servicing settlement have sent the first data to the monitor overseeing them about what they've done to help struggling homeowners .

In a statement, monitor Joseph Smith -- formerly the N.C. Commissioner of Banks -- said he'd received preliminary data on what actions the banks had taken between March and June and was now reviewing it. He said he will release a report analyzing the numbers in the next few weeks.

Principal reduction is one of the main tools banks will be using. In May, Bank of America began sending letters to about 200,000 homeowners about a program to reduce principal for homeowners owing more than their house is worth.

Other actions banks will be taking include "cash for keys" programs and refinancings.

Bank of America must provide $11.8 billion in total aid. Wells Fargo's share is $5.3 billion.