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The latest Or ig i nat ion SERVICING Settlement Monitor Scrutinizes Major Servicers s e c on da r y m a r k e t a na ly t ic s Se r v ic i ng Providing a detailed report on the behavior of the nation's five largest servicers, the leader of the servicing settlement calls their progress "encouraging." Which Metro Area Boasts the Highest Monthly Payment Rate? A study from LendingTree revealed the regions and states that place the highest financial demands on mortgage holders. W hen calculating average monthly mortgage payments by state and the District of Columbia, Lending Tree found the nation's capital has the highest average monthly payment and highest share of income that goes toward a house payment. In D.C., monthly mortgage payments average $1,641, while 31 percent of household income goes toward a mortgage, according to LendingTree. Hawaii ranked second with its average payment of $1,536, and homeowners in the state spend about 30 percent of their household income for a house payment. Typically, when determining housing affordability, mortgages are considered to be unaffordable if more than 30 percent of household income is spent on a monthly house payment. The next three states positioned in the top five were California ($1,445), Virginia ($1,357), and New Jersey ($1,237). In New Jersey, 22 percent of household income goes toward 50 | The M Report a mortgage, while in California, 30 percent is used to pay a mortgage. Nebraska had the lowest monthly mortgage payment and averaged $711. Only 17 percent of household income goes to pay a monthly mortgage bill in the state. Arkansas followed behind closely with an average monthly payment of $715, but 22 percent of income goes toward a mortgage. Iowa was positioned in third place for its monthly payment of $717, and just 17 percent of income is used to pay for a mortgage in the state. The third and fourth spots went to Oklahoma and Missouri, where mortgage payments averaged $731 and $741 per month, respectively. Homeowners in both states spend about 20 percent of their income for their mortgage. LendingTree's ranking also included the average credit score for homeowners in each state. New Hampshire's average credit score of 759 was the highest, while Louisiana's score of 729 was the lowest. T he five mortgage servicers have provided more than 300,000 borrowers with some form of mortgage relief as part of a settlement agreement, according to a report from settlement monitor Joseph A. Smith Jr. Bank of America (BofA), Chase, Citi, Wells Fargo, and Ally reached a $25 billion mortgage settlement with state and federal officials in February 2012 over foreclosure practices. The agreement requires the banks to provide $20 billion in relief, but the servicers are not always credited on a dollar-fordollar basis. Thus, the gross amount of relief actually provided will be higher than what is credited. As of September 30, the banks reported they have provided $26.11 billion in actual consumer relief, which represents a value of $84,385 for each assisted borrower, according to the monitor. "The relief the banks have reported is encouraging," said Smith in a release. "But it is important to remember that no obligations will be met until I have reviewed, confirmed, and credited them." The report explained some principal forgiveness on loans both owned and serviced by a servicer is credited on a dollarfor-dollar basis, but forbearance activities provide a credit of 5 cents for every dollar. Smith added the information provided in the report "cannot