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TH E M R EP O RT | 45 O R I G I NAT I O N S E R V I C I N G A NA LY T I C S S E C O N DA R Y M A R K E T SERVICING THE LATEST SERVICING the Global CAP and testing will resume in Q 3 2015. "We are pleased that after more than one year of intense scrutiny and investigation by the monitor, our original testing was substantial - ly validated," said Ocwen spokes- man John Lovallo. "The monitor appears to have regained confidence in our Internal Review Group and our overall compliance with the National Mortgage Settlement." Consumer Relief Credit S mith confirmed that Ocwen has provided more than $881 million in consumer relief to 8,861 borrowers through first- lien mortgage modifications as of December 31, 2014, in his first report on Ocwen's $2 billion consumer relief obligation under the NMS. "After my thorough reviews, I can confirm Ocwen's progress of over $800 million toward its consumer relief obligation," Smith said. "I will continue to report to the public on Ocwen's consumer relief activities and my reviews as information is available." Lovallo issued a statement that Ocwen was "very pleased" with Smith's first update on Ocwen's progress toward its consumer relief obligation under the NMS. "With over two years left to meet our obligations, we have completed 44 percent of the required consumer relief, and we believe we have satisfied most if not all of the remaining prin - cipal reduction requirements," Lovallo said. "We will submit those principal reductions credits to OMSO [Office of Mortgage Settlement Oversight] in the near future. These principal reduction modifications, as well as all our loss mitigation options we offer to our borrowers, are designed to be net present value positive when compared with a foreclosure. In the end, our principal reduction modifications benefit both inves - tors in the loans and help keep families in their homes." SunTrust Bank S mith also reported that he has credited SunTrust Bank with distributing $7.8 million in consumer relief toward its obligation of $500 million to be provided by September 30, 2017. The initial filing is based on 100 loans submitted by the Atlanta- based through December 31, 2014. This is Smith's second report on SunTrust's consumer relief progress. "SunTrust submitted to me an initial sample of 100 loans to en - sure that its testing protocols had been properly designed and im- plemented," Smith said. "Based on this early review of relief distrib- uted through year-end last year, I am encouraged by SunTrust's progress. I will continue to closely review and oversee its consumer relief distribution until the $500 million requirement has been met, and I will make information pub - lic as soon as it is available." The NMS was originally finalized in April 2012 between 49 states and the District of Columbia, the federal government, and five banks and/or mortgage servicers: Bank of America, Citi, JPMorgan Chase, Parties to GMAC Residential Capital (which was taken over by Ally Financial), and Wells Fargo—to settle claims of misconduct on the part of the servicers involving residential mortgage foreclosures and loan servicing. The settlement created new servicing standards and providing relief to distressed homeowners as well as funding for state and federal governments. As part of the agreement, the five servicers were required to provide $20 billion in consumer relief and $5 billion in other payments. The settlement is considered landmark because it established the first-ever nationwide reforms to mortgage servicing that include better com - munication between servicers and borrowers as well as a single point of contact and appropriate standards servicers for executing documents in foreclosure cases. Ocwen falls under Smith's supervision due to Ocwen's acqui - sition of mortgage servicing rights from a unit of Ally Financial, which took over GMAC Residential Capital (ResCap), one of the original banks included in the settlement. ResCap filed for Chapter 11 bankruptcy in 2013. Ocwen entered into a new consent judgment with the CFPB and 49 states in 2014 that required Ocwen to provide $2.1 billion in consumer relief and comply with standards set forth by the NMS for its entire loan portfolio. "We are pleased that after more than one year of intense scrutiny and investigation by the monitor, our original testing was substantially validated. The monitor appears to have regained confidence in our Internal Review Group and our overall compliance with the National Mortgage Settlement." — John Lovallo, Ocwen spokesman