One Year Later: How the $25B Bank Settlement is Helping Consumers
Thursday, February 21, 2013
It's been one year since five of the nation's biggest banks reached a $25 billion settlement with state attorneys general across the country over charges that the banks used faulty practices to foreclosure on hundreds of thousands of homeowners.
A report released Thursday from the office overseeing the agreement says more than half a million borrowers have received some form of mortgage relief and that banks have paid out some $46 billion to consumers.
New York's attorney General Eric Schneiderman says nearly 22,000 New Yorkers have been helped.
But Guy Cecala, publisher of Inside Mortgage Finance, says the report also revealed complaints from consumers about problems securing loan modifications.
“It’s easier to ask big servicers for money than it is to get them to fix the whole system. The system involves investors. It involves third-party contractors, lawyers, courts. It’s a very complicated system that’s not very easy to fix,” Cecala said.
WNYC’s Amy Eddings spoke to Cecala Thursday.