The report shows that the Settlement, in addition to bringing $2 billion from the banks to Arizona residents, has had a effect on mortgage servicing. For example, after testing, the Monitor reports that the banks passed those tests that ensure they no longer engage in the practice of robo-signing – signing off on foreclosure documents with little or no review. The report also confirms that the five banks in the NMS; Bank of America, Chase, Citi, ResCap Parties, and Wells, have stopped charging distressed borrowers a fee just to process a loan modification request and are adhering to proper customer payment processing procedures.
However, the banks continue consistently to fail to send notices and communicate decisions to borrowers in a timely manner, according to the Monitor. Because of this finding, the five financial institutions in the settlement are officially on notice; they must correct their problems and if a bank fails in either of the next two quarters penalties can include court orders, up to $1 million in civil penalties per each violation, and up to $5 million fine for repeated failures.
With regard to Arizona specifically, as of May 20, 2013, the banks have reported engaging in a gross total of $1.8 billion in consumer relief activities for borrowers. $627.8 million was in the form of first and second lien principal reduction with an additional $223 million in the pipeline for borrowers in trial payment plans.
Nearly 65,000 Arizonans who had their primary residence foreclosed upon received payments totaling $96.5 million. Since the mortgage settlements were announced in February of 2012, the Attorney General’s Office has answered more than 4,000 consumer phone calls, 2,560 emails, and received more than 1,900 written complaints from consumers related to the mortgage crisis.
People with questions regarding the mortgage settlements or who wish to file a consumer complaint can visit the Attorney General’s website at www.azag.gov/foreclosure, contact the Office by email at mortgagefraud@azag.gov, or by phone at 602-542-1797 or 1-855-256-2834 (outside Phoenix area).