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By Lindsay Lorenz
PBN Staff Writer
PROVIDENCE – Homeowners in Rhode Island are continuing to receive financial relief from the five mortgage service providers at the center of the National Mortgage Settlement, Attorney General Peter F. Kilmartin announced Thursday.
The $25 billion settlement, which took effect in March 2012, requires Ally/GMAC, Bank of America, Citibank, JPMorganChase and Wells Fargo to provide relief to help struggling homeowners avoid foreclosure and to reform the mortgage servicing industry.
According to a statement compiled by Kilmartin’s office that uses data from a formal report issued by National Mortgage Settlemement Monitor Joseph P. Smith, 810 Rhode Island homeowners received during the fourth quarter of 2012 that was valued at $58.6 million.
Additionally, 450 Rhode Island homeowners who started the process in the fourth quarter are currently in the process of receiving financial relief, including first lien modifications and refinancing.
“Clearly, it is in the best interest of the mortgage service providers, homeowners and our neighborhoods to find solutions to keep people in their homes,” Kilmartin said. “For the most part, the mortgage service providers have been very responsive to homeowners in need of assistance in restructuring their mortgages. We will continue to monitor the practices of the mortgage service providers to ensure they comply with the settlement and do not revert to the past bad practices that pushed the housing market to the brink.”
In Rhode Island, between October and December, 159 homeowners received first lien modifications and principal reductions valued at $20,022,596; nine homeowners received second lien modification forgiveness valued at $198,565; 280 homeowners completed second lien extinguishments with a total savings of $14,987,721; 148 homeowners completed shorts sales, with deficiencies forgiven, for $15,714,266 in relief; 36 homeowners received enhanced borrower transitional funds by the mortgage service providers valued at $275,786; 66 homeowners have received deficiency waivers from the mortgage service providers, valued at $2,380,853; and 83 homeowners have completed refinancings, with an average interest rate reduction of 2.41 percent, valued at $3,679,704.
Between March and December, mortgage service providers reported that 1,832 Rhode Island homeowners have been granted relief valued at $131.1 million.
Rhode Island homeowners’ estimated share of the settlement is roughly $171.5 million.