FHA/HUD Press Release Announces Mortgage Relief Settlement Progress

An FHA/HUD press release issued in May 2013 spells out progress made in the National Mortgage Settlement, which was arrived at over a year ago between the Department of Housing and Urban Development and the country’s five then-largest mortgage services.

According to HUDNo.13-079, “The nation’s largest mortgage servicers have distributed $50.63 billion in direct relief to over 620,000 homeowners, or roughly $81,000 per homeowner as part of the National Mortgage Settlement, according to a progress update released today by independent settlement monitor Joseph A. Smith of the Office of Mortgage Settlement Oversight.”

The Department of Justice, Department of Housing Urban Development, and 49 state attorneys general came to “a landmark agreement with the nation's five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses” according to the press release.

The settlement allowed for principal reduction and kept home owners in their homes. According to the press release, the settlement also resulted in lower monthly payments, “on over 310,000 loans and actually reducing struggling homeowners’ loan balances by more than $83,000 on average.”

HUD Secretary Shaun Donovan was quoted in the press release saying, “One year in, it is clear that this historic settlement is making a profound difference on lives and communities.  We have far surpassed expectations in our efforts to assist struggling Americans. Due to the efforts by 49 bipartisan state attorneys general and the federal government, hundreds of thousands of people are able to stay in their homes or avoid foreclosure, preventing the erosion of the social fabric of our communities.  As a result of the settlement, over 620,000 homeowners have received on average more than $81,000 in benefits thus far.”

Donovan closes out the press release saying, “We will not stop until homeowners get a fair shake.”

For more information on the settlement or to see if the settlement applies to you, contact the FHA directly by calling 1-800 CALL FHA.

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