[Editor’s note: Corporate Counsel wanted to find out what happened to the billions of dollars in mortgage relief promised to consumers in settlements between the government and misbehaving banks. Today is the third of four installments about our search and what we found. The first story in the series can be found here. Part two can be found here.]
Very little cash actually went to consumers. An exception was one settlement, with SunTrust Banks Inc., which simply sent checks for $1,330 to each foreclosed homeowner who qualified. But usually settlement relief funds were used for refinancing or to write off all or part of mortgage loans. Most of the settlements are still dispensing relief funds, so final figures won’t be in for at least a year or two.
