Banks provide $42 billion in relief to consumers

The monitor of a massive settlement involving some of the nation's largest banks reported that the financial institutions have provided a total of $42.34 billion in "consumer relief" to borrowers.

A total of 7,852 borrowers in North Carolina have received $350.2 million in relief to date, an average of $46,191 per borrower, according to the report issued Thursday by Joseph A. Smith Jr., monitor of the Office of Mortgage Settlement Oversight, which is based in Raleigh. Smith resigned from his position as North Carolina's banking commissioner to take the post last year.

The relief was provided by five giant banks that participated in the settlement of investigations undertaken by state and federal agencies following revelations that bank officials were "robo-signing" foreclosure documents without verifying their accuracy. The banks: Bank of America, Wells Fargo, Citigroup, J.P. Morgan Chase and Ally Financial.

The relief provided to homeowners includes short sales and reduced monthly payments on first and second mortgages.

"I believe we have made progress, particularly as it relates to consumer relief, but I know from my regular conversations with advocates across the nation that the banks and I have much more work to do on behalf of borrowers," Smith said in a statement.

Although the settlement calls for more than $20 billion in consumer relief, in many instances the banks receive less than a dollar credit for each dollar of relief, often significantly less.

In addition to the relief already provided, the banks have extended an additional $3.49 billion in "trial modifications" nationwide. Those are instances where the loan has been modified, but it's not classified as completed until the homeowner had made three months of payments.