Last April’s mortgage servicing settlement with the U.S. Department of Justice and 49 state attorneys general required five major mortgage lenders to implement 320 new mortgage servicing standards by October 2, 2012.
The lenders were Ally, B of A, CitiBank, JPMorgan Chase, and Wells Fargo.
The new standards include single point of contact, loss mitigation, customer service, and other servicing practices.
A designated “settlement monitor” is responsible for ensuring that the lenders adhere to the new standards and will be assessing the lenders servicing performance with 29 criteria, including offenses such as erroneous foreclosure sales, wrongful denial of loan modifications, and other metrics.
This is a step in the right direction, but much more will be required to overcome ongoing foreclosure and short sale servicing deficiencies.
Source: DSNews.com article
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