Bank of America is approaching the consumer-relief target set in its mortgage settlement with the Department of Justice and six states, according to the settlement's monitor.
The monitor, Eric Green, said he and his staff conditionally approved $1.93 billion in consumer-relief credit for the first quarter of 2016. Altogether, Bank of America has completed 91% of the $7 billion in consumer relief dictated by the settlement.
"If Bank of America maintains its current pace in providing consumer relief, it will fulfill its obligations under the settlement agreement this year, well ahead of the four-year deadline," Green said in a news release Wednesday.
More than $1.7 billion of the credit approved by Green for the first quarter came in the form of modifications to 64,072 loans. Additionally, $114 million of the credit Bank of America requested was community reinvestment and neighborhood stabilization in the form of mortgages, real estate and money that the bank donated to municipalities, land banks, nonprofits and other entities.
The bank also received credit for nearly $54 million in new loans to 5,336 low- and moderate-income first-time homebuyers and borrowers in HUD-designated "Hardest Hit Areas" or to borrowers who previously lost homes to foreclosures or short sales.
