On June 19th, Joseph A. Smith, the Monitor of the National Mortgage Settlement, released a report which stated that the nation’s largest mortgage servicers have failed eight of the servicing standards listed in the National Mortgage Settlement. The Monitor’s testing through the end of last year resulted in three testing fails, and there have been five additional fails in 2013. While shameful abuses still endure, Chase, Citi, Rescap, Bank of America and Wells Fargo have made progress. Specifically, all five banks have ended the practice of robo-signing-where banks sign off on foreclosures with little or no review. The five banks have also stopped charging distressed borrowers a fee just to process a loan modification request. Read more about the National Mortgage Settlement below:
‘The landmark National Mortgage Servicing Settlement was an important milestone in protecting homeowners and cracking down on abusive lending practices’ writes Secretary Shaun Donovan in Politico.
Bloomberg News reports ‘Donovan Sees Real Progress With Mortgage Servicers.’
‘Banks still failing to inform applications of loan details’ says Martin Bashir.
The New York Times reports that ‘Monitor Finds Lenders Failing Terms of Settlement.’
‘Watchdog Cites Banks’ Missteps in Mortgage Relief’ says The Wall Street Journal.
USA Today writes ‘Banks not following mortgage standards.’
Olivia is a summer intern in HUD’s Office of Public Affairs.