It’s not often that you get more than you were anticipating, but every so often it happens. According to a recent article by the San Francisco Chronicle, that’s the case with the National Mortgage Settlement with the country’s largest banks.
So what’s the deal? Well, first let’s look at the numbers: Approximately 155,000 California homeowners have gotten just shy of $17 billion in housing relief as a result of the settlement with the nation’s five biggest banks.
However, UC Irvine law professor Katherine Porter, who has been appointed to monitor the settlement in California, told the Chron that homeowners here are likely to get at least $20.5 billion – and likely more. That’s because principal reductions, which cut down mortgage balances, have been on the increase.
“California seems to be getting at least, if not more, than its fair share of relief,” Paul Leonard, director of the Oakland-based Center for Responsible Lending, told the Chron. “The big question is whether the servicers will continue to do principal reductions after they’ve met the requirements of the settlement.”
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