Foreclosure Fraud Settlement Docs (III): “Internal Review Group”
Let’s take a look at the enforcement in the foreclosure fraud settlement. How will the servicers be made to meet their obligations?
This is all covered in Exhibit E of the settlement documents. This starts out by telling us that the servicers will have up to 180 days to actually phase in the implementation of both the servicing standards (more on that later) and the consumer relief.
In addition to the Servicing Standards and any Mandatory Relief Requirements that have been implemented upon entry of this Consent Judgment, the periods for implementation will be: (a) within 60 days of entry of this Consent Judgment; (b) within 90 days of entry of this Consent Judgment; and (c) within 180 days of entry of this Consent Judgment. Servicer will agree with the Monitor chosen pursuant to Section C, below, on the timetable in which the Servicing Standards and Mandatory Relief Requirements (i) through (iv) will be implemented. In the event that Servicer, using reasonable efforts, is unable to implement certain of the standards on the specified timetable, Servicer may apply to the Monitor for a reasonable extension of time to implement those standards or requirements.
So six months from now, elements of this settlement may not be implemented, and servicers can ask for an extension beyond six months.
But wait! There’s a monitoring committee. Joseph Smith, the former Obama Administration nominee for FHFA Director, and the current banking regulator for North Carolina, becomes the enforcement monitor under the settlement. And he will lead a committee made up of members from the offices of the state AGs and banking regulators, DoJ and HUD.