Mortgage Servicing and Loan Modifications: 6.7.8.2.1 Introduction
Under the terms of the National Mortgage Settlement, the five original servicers were required to set aside money to provide various forms of financial assistance to borrowers. Consumer relief was provided in the form of cash payments to former homeowners, loan modification and refinance programs for existing homeowners, and other assistance.375 Both the modification and refinance programs targeted borrowers who were underwater, that is they owed more on their mortgage than their homes were worth.