Some Nevada homeowners gain relief from foreclosure settlement

Nevada has benefited to the tune of almost $1 billion after the February announcement of a $25 billion legal settlement over questionable foreclosure and lending practices that have been brought under control.

But one banking regulator's latest job comes with news conferences and lots of media scrutiny. For almost a year, Joseph A. Smith Jr., the former North Carolina state banking commissioner, has been the "monitor" of the landmark agreement between the government and the nation's five largest banks.

Smith's primary role is to ensure the banks - Wells Fargo, Bank of America, Citigroup, J.P. Morgan Chase and Ally Financial - comply with the terms of the settlement by providing billions to lower loan balances, refinancing loans and completing short sales.

"The efficacy of my job as monitor of the settlement depends, in large part, on the information I receive from the people who are on the front lines working with struggling homeowners each day," Smith said Thursday at a news conference with Nevada Attorney General Catherine Cortez Masto in Las Vegas.

Smith said it's critical that Nevada homeowners are treated appropriately.

A 16-page section of the court-approved settlement outlines Smith's legal powers and his responsibilities, with the information banks must provide him on a regular basis. Smith said there were "significant penalties" available in the settlement for banks that fail to meet their obligations.

Nevada homeowners have received more than $907.9 million from the nation's biggest banks between March 1 and Sept. 30 as part of the settlement, according to figures released last month. So far, 9,071 homeowners in Nevada have benefited, for an average of $100,089.

"There is still a sense that there is a lot of work to do," Smith said. "We are still in the early days, but that's getting old."

Smith said his office is still auditing the numbers submitted by the banks. Homeowners with complaints or questions can get more information at nationalmortgagesettlement.org, which includes links to the Nevada Attorney General's office.

"Some struggling homeowners have begun to see benefits of the national mortgage settlement, but there is still more that can be done," Masto said.

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