22 Oct Mortgage Servicers Implement 320 Servicing Standards
Five of the country’s largest mortgage servicers were given 180 days to implement the 320 servicing standards that were handed down by the U.S. Department of Justice and 49 state attorneys general. The settlement addresses issues like borrower communication, training for loss mitigation staff, foreclosure document execution, and creating a single point of contact to streamline the experience for borrowers. The 180-day countdown began on April 5, 2012 when the settlement was made official by a federal judge.
As of October 2, 2012, all of the banks were required to be in full compliance with the agreement’s servicing standards.
Joseph A. Smith, Jr., the designated settlement monitor charged with ensuring all of the banks comply with the terms of the agreement, notes, “As of today, the five banks subject to the settlement are required to operate in full compliance with its servicing standards. I will conduct careful and thorough reviews of the banks’ processes to assure and verify that they are compliant with the settlement’s rules.”
Smith will use a series of 29 defined metrics to ensure the banks are cooperating and operating as required. He says he will evaluate the third-quarter and fourth-quarter performance of each servicer against all 29 metrics beginning in the first quarter of 2013.
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