CT’s Share Of Mortgage Relief Higher Than Expected

Connecticut homeowners with troubled mortgages stand to receive a larger than expected share of last year’s $25 billion settlement with major loan servicers over their foreclosure practices, the attorney general said today.

The latest report, released today, shows that 5,050 Connecticut borrowers reaped $345.3 million in principal reductions, short sales and relief for unemployed borrowers and other relief.

Attorney General George Jepsen, back row, center, at February, 2012 mortgage foreclosure settlement announcement in Washington, D.C. Photo Credit: Getty Images

The initial estimate last year for Connecticut was $155 million.

Attorney General George Jepsen said Connecticut’s numbers are better than anticipated because the state has been aggressive in bringing homeowners and their loan providers together by hosting foreclosure assistance events around the state.

“This is very good news for distressed homeowners, and I am pleased the loan servicers are making good on their promises to provide real relief to help people stay in their homes,” Jepsen said. “While not everyone will qualify for help, the numbers in Connecticut show a very positive trend.”

Jepsen was part of the team that negotiated the settlement between the country’s five largest mortgage servicers and the federal government and 49 states. The servicers are:  Bank of America, CitiMortgage, Inc., Ally Financial, Inc., J.P. Morgan Chase Bank and Wells Fargo.

The settlement required that banks provide $17 billion in debt reduction and other relief to homeowners within three years. The agreement also specifies that 60 percent of the relief come from first and second mortgage principal reductions and another $3 billion through refinancing.