Banks have given $907.9 million in relief to struggling Nevada homeowners

Nevada homeowners received more than $907.9 million from the nation's biggest banks between March 1 and Sept. 30 as part of a settlement earlier this year with state and federal officials over foreclosure servicing activities, according to figures released Monday.

Joseph A. Smith Jr., the former North Carolina banking commissioner hired by the federal government to monitor the settlement, reported 9,071 homeowners in Nevada have benefited so far, for an average of $100,089 per borrower.

"The relief the banks have reported is encouraging," Smith said.

The relief provided by the five banks involved in the settlement - Wells Fargo, Bank of America, JP Morgan Chase, Citigroup and Ally Financial - has ranged from lowering loan balances to helping refinance homeowners into a new loan with lower rates to completing short sales.

The National Mortgage Settlement credits banks for providing relief, but credits are not dollar for dollar. That's why Bank of America's $15.8 billion in relief so far is only about half of its required $7.6 billion under the settlement.

"Thousands of struggling Nevada homeowners have been helped but many still risk foreclosure," said Nevada Attorney General Catherine Cortez Masto. "My office and I are still reviewing numbers from the monitor's report but on its face, it seems encouraging. That said we await the monitor's vetting and auditing of these figures."

The report shows nationwide banks have extended more than $26.1 billion in gross relief to more than 300,000 borrowers, or roughly $84,385 per homeowner.

Smith said Monday's numbers were self-reported and submitted by the banks last week. He said "no obligations will be met until I have reviewed, confirmed and credited them."

"I look forward to conducting that work in the coming months." Smith said.

The deal between banks and the government was finalized in February.

"Wells Fargo has made significant progress toward the fulfillment of its commitments under the National Mortgage Settlement while continuing to serve all of our customers who need assistance or are looking to refinance," said Michael DeVito, executive vice president for Default Mortgage Servicing at Wells Fargo Home Mortgage.

In Nevada, Wells Fargo has spent $76.6 million to assist 1,158 borrowers, or roughly $66,156 per homeowner. Citigroup has helped 482 homeowners at $33.7 million, for $69,958, while Ally assisted only 60 homeowners, spending $4.75 million, or $79,267 per homeowner.

Bank of America and JP Morgan Chase were the two largest providers of relief to consumers in Nevada, according to the report.

From March 1 until Sept. 30, Bank of America has spent $562.3 million to assist 5,226 homeowners, or roughly $107,607 per homeowner. Chase reported $230.4 million in relief to assist 2,145, or roughly $107,444 per homeowner.

Both Wells Fargo and Bank of America say they are on track to meet their obligations within the first year of the three-year agreement.

The $25 billion settlement includes $5 billion in cash for states to pay for foreclosure-prevention initiatives, along with almost $17 billion to pay for mortgage forgiveness, forbearance, short sales and other aid to homeowners.

Servicers will provide $3 billion in refinancing to lower homeowners' interest rates and will pay about $1.5 billion more to homeowners harmed by foreclosure activities.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.Follow @sierotyfeatures on Twitter.