Wells Fargo & Co. announced that the company has reported consumer relief and refinance credits totaling $4.4 billion as of June 30, 2013 to the Office of Mortgage Settlement Oversight. Under the terms of National Mortgage Settlement, Wells Fargo committed to provide $4.3 billion in consumer relief and refinances for its customers.
The consumer relief and refinance efforts reflected in the monitor’s latest report represent only a fraction of Wells Fargo’s total foreclosure prevention and refinance activity since 2009. Wells Fargo had more than 876,000 active trial and completed modifications in place and from January 2009 through June 2013 completed 5.4 million refinances. The 123,000 modifications, other consumer relief options and refinances for which the company will request credit under the settlement represent slightly less than two percent of its total activity during that same period.
“The National Mortgage Settlement programs built on our prior consumer relief and refinance efforts, and we will continue our strong commitment to helping customers who face payment challenges or who want to refinance,” said Michael DeVito, executive vice president for Servicing at Wells Fargo Home Mortgage. “That includes utilizing principal reduction through modifications where appropriate for customers facing financial hardships when they have Wells Fargo-owned loans that we also service.”
Wells Fargo’s efforts under the National Mortgage Settlement programs reduced monthly payments by $948, on average, for borrowers who had completed a modification on their first-lien mortgage loan and reduced monthly principal and interest payments by $364, on average, for borrowers who had refinanced.
Wells Fargo implemented all of the servicing standards required under the settlement on schedule by Oct. 2, 2012. The company is working with the monitor to assess the company’s performance on an ongoing basis and continues efforts to improve its service to customers. For the third reporting period, ending March 31, 2013, the monitor has indicated that the company will meet all 28 of the metrics on which it will be measured.