Banks Complete Consumer Relief Obligations Under National Mortgage Settlement

Wednesday, March 19, 2014

Intended to address widespread foreclosure abuses that occurred at the height of the housing crisis, the National Mortgage Settlement reached a milestone this week. Joe Smith, the settlement monitor, announced that all five of the named banks have satisfied their consumer relief and refinancing obligations under the agreement. In total, the banks provided more than $50 million in credited relief nationwide, which translates to $20 billion in gross relief under the joint state-federal settlement. 

Tennessee received an estimated $240 million in relief including $180 million in refinances, principal reductions, and approved short sales.  Under the terms of the settlement, the majority of the credited relief went to help homeowners lower their mortgage payments and take them out of foreclosure. Over 4,000 Tennessee homeowners received some type of assistance under the settlement with an average individual benefit estimated at over $40,000.

The settlement included the nation’s five largest mortgage servicers:  Bank of America, JP Morgan Chase, Citi, GMAC/Ally Financial and Wells Fargo.  After investigating complaints about foreclosure abuses from homeowners throughout the state, Tennessee participated on the multistate executive committee for 2012 settlement. 

“We are pleased to see that Tennesseans have received substantial benefits under the National Mortgage Settlement,” says Tennessee Attorney General Bob Cooper.  “In working with homeowners throughout the state, we have seen firsthand how the settlement has allowed struggling homeowners to lower their monthly payments and avoid foreclosure.”

The settlement’s monitor will continue to review the banks’ compliance with the settlement’s servicing standards. The standards require the five banks to evaluate homeowners for all options to foreclosure, including the federal Making Home Affordable Program, on a fair and timely basis. With the servicing standards still in effect, the Tennessee Attorney General’s office will continue to work with homeowners who have disputes with the five banks.

The state of Tennessee has also set up a free mortgage assistance hotline for all homeowners regardless of who services their mortgage. If having trouble paying a mortgage, call 855.876-7283. For a list of free housing counselors in the area, visit http://www.keepmytnhome.org.


Corker Asks Colleagues To "Oppose Blatant Budget Gimmick Proposal To Fund Highway Trust Fund"

In remarks on the U.S. Senate floor Monday, Senator Bob Corker said senators should reject using a budget gimmick known as pension smoothing to pay for a short-term extension of the Highway Trust Fund and instead commit to a long-term, sustainable solution to highway funding. “Many claim that budget gimmicks should not be used as offsets to pay for spending," said Senator Corker. ... (click for more)

Cornerstone Community Bank Has Rise In Earnings

Cornerstone Bancshares, Inc. (OTCBB: CSBQ; CSBQP), parent company of Cornerstone Community Bank, today reported earnings for the second quarter ended June 30, including a rise in income. Net income for the quarter was $409,000, a 3.3 percent increase from the same quarter of 2013.  Net interest income increased 5.5 percent from the same quarter last year. “Cornerstone ... (click for more)

EPB Says It Did Not Overbill The City; Says City Got $685,877 Break

EPB officials said Tuesday that an exhaustive audit of its street light contract with the city showed that it did not overbill the city. Instead, it said it found that the city was underbilled $685,877. EPB said it only goes back one year on errors so the amount owed by the city would be $178,314. Officials said that would be discussed with the city. Stan Sewell, the city's ... (click for more)

Citizens To Comment Next Tuesday On Sound Control Ordinance That Allows Higher Sound Around Downtown Clubs

Citizens will be allowed to comment next Tuesday on a new Sound Control Ordinance that allows higher sound from nightclubs in a downtown Controlled Sound Boundary. Track 29 behind the Chattanooga Choo Choo, that has drawn the wrath of some nearby Southside residents, is within the boundary, which goes along the river on the north and west, to around Erlanger Hospital on the ... (click for more)

I'm Number One In A Round About Way

Roundabouts have been popping up all over Chattanooga over the past few years and for the most part have been successful.  Unfortunately there are some who just don’t get it as I have found out the hard way.    My latest instance was last week when a young woman on her cell phone almost t-boned me as she flew into the roundabout without yielding.  A near miss ... (click for more)

Roy Exum: Oscar Brock’s True Passion

I don’t pay much attention to the Hamilton County School Board. Once the moon and the stars aligned behind Superintendent Rick Smith, you hear very little, if anything, from the nine-member council that oversees an annual budget of almost $400 million and employs 4,480 people. So chew this for a minute: approximately 2,000 of those people are not teachers. Yes, there are 78 principals ... (click for more)