Joseph A. Smith Jr., Monitor of the National Mortgage Settlement, has filed a report with the Federal District Court for the District of Columbia that certifies that Residential Capital LLC, Ally Financial Inc. and GMAC Mortgage LLC (collectively known as "Ally") have satisfied their consumer relief obligations and partially certifies completion of Ally’s mandatory solicitation requirements under the settlement.
Ally was required to provide $200 million of relief to consumers in the form of loan modifications, short sales, principal forgiveness and other forms of relief as part of the NMS. Ally has met and exceeded this obligation and the Monitor has certified its consumer relief credit under this part of the Settlement.
“After a thorough review, I have certified that Ally has satisfied its minimum consumer relief obligations under the Settlement," said Smith. "I have confirmed that Ally has provided $257,411,785 in credited relief to borrowers across the nation. Ally, and any successor servicer that purchases Ally’s portfolio, remain subject to its continuing mandatory solicitation obligations and to the servicing standards, or reforms, outlined in the NMS."
Ally also has a mandatory solicitation requirement for certain borrowers and has satisfied some of this requirement, for which the Monitor has partially certified Ally’s compliance.
Smith is also set to release his third progress report, which will include data on the consumer relief activity Ally, Bank of America, Citi, Chase and Wells Fargo, the five banks that are a part of the NMS, performed between March 1-Dec. 31, 2012, based on their reports to the states and the Monitor.
"I look forward to sharing more information about the process through which I made this determination with the public when I release my next progress report," said Smith. "I will continue my work with Ally and its successors to ensure that they are following the servicing standards and appropriately working with their customers over the next two years. I hope that the consumer relief and the servicing standards the crafters of this bi-partisan, state-federal Settlement negotiated will continue to help homeowners across the nation.”