Statement From A.G. Schneiderman Regarding The National Mortgage Settlement Monitor's Report On Consumer Relief
NEW YORK –National Mortgage Settlement Monitor Joseph A. Smith, Jr. today released an update on the consumer relief activities of the five banks that are parties to the National Mortgage Settlement, as reported by the banks through March 31, 2013. According to the report, thousands of New York consumers have received over $1.92 billion in relief under the settlement in the first year.
“New York homeowners have received almost $2 billion in financial relief under the National Mortgage Settlement—far more than the federal government projected would flow to our state a year ago,” said Attorney General Eric T. Schneiderman. “While we are pleased that the benefits to homeowners -- including reduced debt, lower mortgage payments, and averted foreclosures -- have been substantial, our work is not finished. My office will continue to monitor the banks’ compliance with the settlement.”
In addition to the hundreds of millions of dollars in relief from lenders reflected in today’s report, Attorney General Schneiderman secured over $130 million in hard dollars for New Yorkers as part of the settlement. Of this amount, Attorney General Schneiderman launched the Homeowner Protection Program, a $60 million commitment over three years to fund housing counseling and legal services for struggling New York homeowners. Throughout New York State, 34 legal services organizations and 59 housing counseling agencies will receive over $16.1 million this year to provide free foreclosure prevention services. An additional $3.9 million has been allocated for training, technical assistance, and other support services to assist homeowners in foreclosure. In part because of the advocacy of HOPP funded housing counselors and legal services providers, over 4,300 New York homeowners have completed, or have active trial modifications for approximately $540 million worth first mortgage principal reduction.
In January of 2012, Attorney General Schneiderman was appointed by President Obama to co-chair the Residential Mortgage-Backed Securities Working Group. This joint investigation brings together the Department of Justice (DOJ), HUD, the Securities and Exchange Commission (SEC), the Consumer Financial Protection Bureau, several state law enforcement officials, and other federal agencies to investigate those responsible for misconduct contributing to the financial crisis through the pooling and sale of residential mortgage-backed securities. It builds upon ongoing state and federal investigations, while also launching new ones.
For additional information regarding the mortgage settlement, please visit:
New York State Mortgage Settlement - Official Website
National Mortgage Settlement - Official Website
U.S. Department of Housing and Urban Development - Official Website
U.S. Department of Justice - Official Website