Some 6,260 Connecticut homeowners who were in danger of losing their dwellings have gotten nearly $448.3 million in debt relief as part of the multi-billion-dollar global settlement with some of the nation’s biggest mortgage servicers, authorities say.
Attorney General George Jepsen, who helped negotiate the year-old settlement, announced Thursday that the $25 billion mortgage foreclosure settlement with the nation’s five largest mortgage loan servicers — Bank of America, CitiMortgage, Ally Financial, J.P. Morgan Chase Bank and Wells Fargo — is a “tremendous success.’’
According to Thursday’s final report from the national settlement monitor, since March 1, 2012 6,260 Connecticut borrowers have drawn an average benefit of $71,618.
In addition, loan modifications are in process for 14 additional homeowners, totaling $1.2 million in additional debt relief, Jepsen said. Those successful in refinancing their homes saw an average drop in interest rate of 2.24 percent.
Moreover, nearly 5,000 Connecticut borrowers who lost their homes to foreclosure received payments totaling approximately $7 million, he said.
The settlement also brought Connecticut $27.1 million, which the state used for various foreclosure prevention programs, and
Nationally, nearly 644,000 borrowers have benefitted from nearly $51.3 billion in mortgage relief since the program began, with an average benefit of $79,742.
Meantime, the state, coordinating through the Connecticut Banking Department, has set another foreclosure-relief event to connect troubled mortgagees and their lenders face-to-face for Oct. 22 at the Hartford Convention Center.
