Smith said though the total amount is already larger than the banks' $25 billion obligation, it might be misleading, because not all the claims filed by the banks will be credited to the terms under the settlement.

For their part, the banks seem to have given out more relief than anticipated. Originally, for example, principal reductions were expected to average about $20,000. The actual reductions are about six times higher.

Only mortgages held by the banks or owned by investors who approve the modifications are eligible for relief under the settlement. That means mortgages backed by the federal government agencies Fannie Mae or Freddie Mac are nor included, nor are those insured by the Federal Housing Administration.