By Vicki Needham - 11/19/12 08:30 PM EST
So far, banks have provided more than $10.5 billion in principal reduction, lowering monthly payments on more 118,000 loans and actually reducing loan balances by more than $88,000 on average.
More than $19.4 billion of the overall completed consumer relief has come in the form of debt forgiveness, the report showed.
Smith said he will have to confirm the figures before banks get credit. If their commitment is not fully satisfied within three years, the banks will be required to pay a penalty of upward 140 percent of its unmet commitment amount.
Earlier this year, the Justice and Housing Urban Development (HUD) departments joined with 49 state attorneys general in the agreement inked with the nation's five largest mortgage servicers — Ally Financial, Bank of America, JPMorgan Chase, Citigroup and Wells Fargo — to address mortgage loan servicing and foreclosure abuses.
Most of the relief, $13.13 billion, came in short sales for 113,534 borrowers amounting to about $115,672 each.
Nearly 31,000 homeowners with loans totaling $4.19 billion are in active modifications, amounting to more than $135,223 of relief for each borrower if they are completed.
Meanwhile, nearly 22,000 completed first lien modifications worth $2.55 billion in loan principal forgiveness, averaging approximately $116,929 per borrower and more than 50,000 got $2.78 billion in relief on second liens, or $55,534 for each borrower.
Through the various other consumer relief programs servicers provided $1.01 billion in relief to 39,637 borrowers.
Servicers refinanced 37,396 home loans with an average unpaid principal balance of $210,398, reducing the annual interest rate by approximately 2.34 percent on average with a benefit of $1.44 billion over the average life of the loan.
On average, each borrower will save approximately $409 in interest payments each month.
In addition, states have allocated more than $1 billion of their settlement funds for housing-related purposes, including nearly $250 million to housing counseling and another $50 million to legal aid.