Bank of America is closing in on its requirement to provide $7 billion in consumer relief under a landmark 2014 settlement, a report by the settlement’s independent monitor shows.
Monitor Eric Green this week said he’s validated about $6.4 billion in aid provided by the Charlotte-based bank, 91 percent of the required total. Green noted his approval of the relief provided so far is conditional and subject to final determinations.
Bank of America must provide the aid to comply with its $16.65 billion mortgage settlement with the U.S. Justice Department and six states. In that accord, Bank of America admitted it, Countrywide Financial and Merrill Lynch took part in faulty mortgage-backed securities practices. Bank of America bought Countrywide in 2008 and Merrill Lynch in 2009.
More than 80 percent of the bank’s approved relief is composed of modifications to make home loans more affordable, Green’s report shows. The relief also includes new home loans to low- and moderate-income borrowers, as well as donations to nonprofit organizations to promote neighborhood stabilization.
If the bank continues at its current pace, it will fulfill its consumer-relief obligations this year, well ahead of the August 2018 deadline, Green said.
The settlement also called for the bank to make $9.65 billion in cash payments to the government and the six states.