Earlier this year five of the biggest mortgage lenders in the nation were ordered to pay out $25 billion for mortgage relief efforts. Now that we are four months into the three year program, people want to know how they are doing.
So far the five biggest lenders have provided $10.6 billion in relief towards helping homeowners struggling with foreclosure.
$1.3 billion of the provided relief is in the form of principal mortgage loan reductions, in which lenders eliminate part of the owed amount on a loan for homes valued less than what is owed. Additionally, $8.7 billion of the relief came in the form of short sales, allowing many foreclosure doomed homeowners the chance to sell the home instead.
The current consensus is that lenders are doing a good job of meeting the needs of struggling homeowners. Lender complaints are reducing, money is being saved by lenders, and homeowners are getting the help they need.