SUMMARY OF SIDE AGREEMENTS BETWEEN NMS SERVICERS & SELECTED STATES

 

 

Bank of America

JP Morgan Chase

Wells Fargo

Ally/GMAC

CitiGroup

California

·         $8.1 billion in consumer relief over 3 years

·         75% of the credits to be distributed by 2 years

·         25% Extra Credit (EC)[1] for 1st mtg principal reduction credits within 12 months in “hardest hit” counties

·         15% EC for 1st mtg principal reduction credits in other counties

·         Normal Credit (NC)[2] for (a) 1st mtg loan mod. principal reduction credits, (b) 2nd mtg short sales, deed-in-lieu principal reduction credits

Penalties:

·         3-year credits fail = 50% unmet credits (max $300 million)

·         2 & 3 year fail = 65% of unmet credits (max $400 million)

·         $1.95 billion in consumer relief over 3 years

·         75% of the credits to be distributed by 2 years

·         25% EC for 1st mtg principal reduction credits within 12 months in “hardest hit” counties

·         15% EC for 1st mtg principal reduction credits in other counties

·         NC for (a) 1st mtg loan mod. principal reduction credits, (b) 2nd mtg short sales, deed-in-lieu principal reduction credits

Penalties:

·         3-year credits fail = 50% unmet credits (max $200 million)

·         2 & 3 year fail = 65% of unmet credits
(max $200 million)

·         $1.95 billion in consumer relief over 3 years

·         75% of the credits to be distributed by 2 years

·         25% EC for 1st mtg principal reduction credits within 12 months in “hardest hit” counties

·         15% EC for 1st mtg principal reduction credits in other counties

·         NC for (a) 1st mtg loan mod. principal reduction credits, (b) 2nd mtg short sales, deed-in-lieu principal reduction credits

Penalties:

·         3-year credits fail = 50% unmet credits (max $200 million)

·         2 & 3 year fail = 65% of unmet credits
(max $200 million)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---[3]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---[4]

Delaware

$500,000 paid to the DE DOJ

$500,000 (same)

$500,000 (same)

(same)

(same)

Florida

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Florida

(ctd)

·         $1.8 billion in consumer relief over 3 years

·         75% of the credits to be distributed by 2 years

·         25% EC for 1st mtg principal reduction credits, deficiency waivers, or refinancing within 12 months

·         NC for (a) 1st mtg loan mod principal reduction credits, (b) 2nd mtg short sale or deed-in-lieu principal reduction credits, or (c) any mtg deficiency waivers issued prior to beginning and/or during Florida-Servicers agreement

Penalties:

·         3-year credits fail = 50% unmet credits (max $105 million)

·         2 & 3 year fail = 65% of unmet credits
(max $105 million)

·         $1 billion in consumer relief over 3 years

·         75% of the credits to be distributed by 2 years

·         25% EC for 1st mtg principal reduction credits, deficiency waivers, or refinancing within 12 months

·         NC for (a) 1st mtg loan mod principal reduction credits, (b) 2nd mtg short sale or deed-in-lieu principal reduction credits, or (c) any mtg deficiency waivers issued prior to beginning and/or during Florida-Servicers agreement

Penalties:

·         3-year credits fail = 50% unmet credits (max $70 million)

·         2 & 3 year fail = 65% of unmet credits
(max $70 million)

·         $1.2 billion in consumer relief over 3 years

·         75% of the credits to be distributed by 2 years

·         25% EC for 1st mtg principal reduction credits, deficiency waivers, or refinancing within 12 months

·         NC for (a) 1st mtg loan mod principal reduction credits, (b) 2nd mtg short sale or deed-in-lieu principal reduction credits, or (c) any mtg deficiency waivers issued prior to beginning and/or during Florida-Servicers agreement

Penalties:

·         3-year credits fail = 50% unmet credits (max $70 million)

·         2 & 3 year fail = 65% of unmet credits
(max $70 million)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

Massachu-setts

No monetary benefit for the state.  Release of certain claims only; capping recovery at $2 million per servicer for certain continuing litigation.

New York

$5,937,000 paid to the AG

$5,937,000 paid to the AG

$5,937,000 paid to the AG

$1,250,000 paid to the AG

$5,937,000 paid to the AG

 

 



[1] “Extra Credit” means that for every dollar spent on activity, it is recorded as more than $1 for the purposes of this agreement (e.g., if 25% EC is granted, every $1 would count as $1.25).

[2] “Normal Credit,” as opposed to “Extra Credit,” means that for the purposes of this side agreement every dollar spent is recorded at $1, even though it might count as less than that for the nationwide agreement.

[3] Ally Financial/ResCorp/GMAC signed onto the California Side Agreement, but provided no benefits or incentives.

[4] CitiGroup also signed onto the California Side Agreement, but provided no benefits or incentives.