Servicers Will Meet ‘Each and Every’ Standard in $25B Settlement
The first real test of the $25 billion mortgage settlement comes Tuesday, when the nation’s largest servicers must reveal their progress.
That’s the deadline for the five companies—Ally, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo—to certify that they are complying with 304 servicing standards, everything from loss-mitigation practices to adequate training to proper communication with customers.
“Every indication I have from all five servicers is they will be ready to perform each and every one of the servicing standards on Oct. 2,” says Joe Smith, the former bank regulator hired to oversee implementation of the settlement’s terms. “Each of the firms, to a varying level of severity, is going through a really extensive quality control process with regard to each of the standards.” [Lawyers–I’ll bet you see robosigned bs after that Oct. 2 certification; Reporters–perhaps you can ask Smith about it?]