Tuesday, May 21, 2013

National mortgage settlement update due this morning

We'll get our latest look today at the progress Bank of America, Wells Fargo and three other major banks have made on a $25 billion state and federal mortgage servicing settlement.

Settlement monitor Joseph Smith, the former N.C. banking commissioner, is set to release his latest report at 10 a.m. He'll provide details on the dollar figure of mortgage relief each bank reports having provided to homeowners around the country -- including principal reduction, short sales and second-lien extinguishments.

In an annual securities filing earlier this month, Bank of America reported that it had "substantially fulfilled" its requirements under the settlement. The Charlotte bank has asked Smith's office for a confirmation of its progress, but it is unclear whether that will be released today as well.

Smith's latest report, released in February, disclosed that banks provided $350 million in relief to about 7,600 borrowers in North Carolina through the end of 2012. About 10 percent came from principal reduction. A activist group demonstrated in front of Bank of America's headquarters last week, calling for more principal forgiveness from the nation's banks.