Wells Fargo has reported that between March 1, 2012 and Dec. 31, 2012 the company assisted more than 70,000 homeowners through expanded loan modifications, other customer relief options, and refinances under last year's Nationwide Mortgage Servicing Settlement. As a result, Wells Fargo has fulfilled an estimated 73.5 percent of its $4.3 billion national consumer relief and refinance commitment and remains on track to complete its entire commitment in the required time frames.
“Wells Fargo has continued to make steady progress toward the prompt completion of the commitments we made as part of the National Mortgage Settlement and to continue to address the needs of all of our customers who are facing financial challenges and those who are seeking to refinance,” said Michael DeVito, executive vice president for Default Mortgage Servicing at Wells Fargo Home Mortgage. “In total, as of the end of 2012 there were nearly 842,000 Wells Fargo customers in modifications started since January 2009 and during that time we assisted customers with more than 4.7 million refinances allowing them to take advantage of lower interest rates.”
The results in the report indicate Wells Fargo had completed the refinances necessary to satisfy its commitment under the refinance program as of Dec. 31, 2012. In addition, the company expects to meet its commitment under the consumer relief programs within the required timeframes. While Wells Fargo will continue to process refinance applications submitted through the expanded program in the pipeline, the company has stopped accepting new refinance applications under this program. The progress to date reflected in the report regarding the refinance program only includes completed refinances; the estimated number of customers expected to be refinanced and the estimated financial impact of the entire expanded program is consistent with what the company has previously disclosed.
“It’s clear that the expanded modification and refinance programs are providing meaningful relief and payment reductions for our customers,” said DeVito. “Those who have obtained a modification on their first-lien mortgage loan have reduced their monthly payments by an average of nearly 44 percent and, on average, borrowers who have refinanced have seen principal and interest payment lowered by approximately $420 per month.”