Seven of the largest mortgage servicers say they have trimmed an average of $614 off monthly payments on over 16,000 loans as part of foreclosure prevention required by a regulatory settlement.

The reductions in principal and interest claimed by the financial institutions were reported Wednesday by the Office of the Comptroller of the Currency in an update of progress to carry out the settlement. The pact, which also includes the Federal Reserve Board, is aimed at addressing widespread errors in how banks serviced loans during the foreclosure crisis.

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