Banks Complete $19B in Mortgage Write-Downs

February 25, 2013

So far, the nation’s five largest banks have provided $19 billion in mortgage principal write-downs to about 240,000 borrowers under a settlement reached last year over allegations of faulty foreclosures. 

Bank of America has completed the most principal write-downs at about $13.5 billion. 

Under last year’s settlement, the five largest banks agreed to provide at least $10 billion in principal write-downs and $10 billion in additional home owner aid, such as short sales. A watchdog’s report released Thursday said the banks had provided aid worth up to $45.8 billion to more than 550,000 borrowers. 

Short sales have accounted for the biggest bulk under the settlement. Banks have forgiven about $19.5 billion on more than 168,000 homes to date, according to the report. 

The settlement involves Bank of America, Ally, Citigroup Inc., JPMorgan Chase, and Wells Fargo. 

Source: “Banks Provide $19 Billion in Debt Write-Downs Under Foreclosure Settlement,” The Wall Street Journal (Feb. 21, 2013)

Read more

Banks Near $10B Settlement Over Foreclosure Abuses