Monitor Reminds Servicers of Today's Deadline for Compliance with Settlement Standards

by devteam October 3rd, 2012 | Share

The monitor in charge of the $25 billionrnNational Mortgage Settlement reminded the five participating servicers as well as thernpublic that today marks the deadline for an important settlementrncomponent.  As of today, the banks arernrequired to be in full compliance with the agreement’s 304 servicing standards</bthat guide their interaction with customers.</p

Joseph A. Smith, Jr., released thernfollowing statement. </p

“Todayrnis the 180th day since the entry of the consent judgments comprising thernNational Mortgage Servicing Settlement. As of today, the five banks subject tornthe Settlement are required to operate in full compliance with its servicingrnstandards. I will conduct careful and thorough reviews of the banks’ processesrnto assure and verify that they are compliant with the Settlement’s rules. <br /<br /"While my team and I will work to review the banks' compliance ourselves, Irnalso need to hear from consumer professionals in the marketplace who work onrnthese issues day in and day out. I am asking these professionals to report tornme when they see a mortgage servicer breaking the rules established in thernSettlement. </p

Thernsettlement agreement, reached on February 12 between Ally/GMAC Bank, Bank ofrnAmerica, Citi, JPMorgan Chase, and Wells Fargo and 49 state attorneys generalrnand the federal government was the largest consumer financial protectionrnsettlement in U.S. history.  In additionrnto the financial settlement, the lenders are required to meet a set ofrnservicing standards including providing borrowers with a single point ofrncontact for resolving problems, meet appropriate standards for executingrndocuments in foreclosure cases, ending improper fees, and ending dual-trackrnforeclosures for many loans.</p

Thernagreement also provides state attorneys general with oversight of nationalrnbanks wherein the bans are required to regularly report compliance to thernoutside monitor and pay heavy penalties for non-compliance with the settlement,rnincluding missed deadlines.</p

Consumerrnprofessionals can report any incidents of non-compliance at

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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