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Mortgage loan relief slow in coming, analysis shows

WASHINGTON — Banks have paid less than half the $5.7 billion owed to troubled homeowners under nearly 30 settlements brokered by the government since 2008, delaying help to millions of victims of discrimination and shoddy lending that epitomized the housing crisis, according to a Washington Post analysis.

When the settlements were announced with fanfare, officials hailed them as a long-promised reckoning with the financial industry. Regulators found some banks had saddled borrowers with unaffordable mortgages or assigned higher rates to minorities even when they qualified for a better deal. Some banks were accused of having employees ‘‘robo-sign’’ foreclosure documents without reading them or having proper documentation.

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But consumer advocates and lawmakers have grown increasingly frustrated by the delays in releasing the settlement funds, which they say is making it difficult for some borrowers to recover financially.

In 2011, Wells Fargo agreed to compensate up to 10,000 borrowers after the Federal Reserve found the bank was steering them into subprime loans, though they qualified for better mortgages. But no borrowers have received money yet.

Last year, Bank of America agreed to pay some borrowers between $1,000 and $5,000 for what the Justice Department called lending discrimination by illegally asking some would-be home buyers who relied on disability income to provide a doctor’s letter verifying the severity of their ailment. But it’s still unclear how many people will ultimately be paid. There isn’t a full list of the victims.

The agreements are coming under increased scrutiny by state authorities, who are concerned the banks are not living up to their obligations. The New York attorney general recently threatened to take Bank of America and Wells Fargo to court to force the banks to comply with a large national agreement to help borrowers.

‘‘These settlements are a reflection of the dismal response from the federal government and the banks to consumers who got bad mortgages,’’ said John Taylor, chief executive of the National Community Reinvestment Coalition, a consumer advocacy group. ‘‘Their needs got pushed behind taking care of the banks.’’

Banking industry officials and regulators say the scale and complexity of the settlements have grown over the years, making them difficult to execute quickly. They can involve multiple agencies, banks, lawyers, and consultants. In some cases, banks are still identifying people affected or waiting for borrowers to respond to notifications of eligibility.

So far, more than 3 million borrowers have received checks, some for more than $100,000. But more than half of the borrowers affected will receive no more than $300.

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