Mortgage Settlement Monitor Reports Eight Fails in Testing Results
Joseph Smith releases summary of five compliance reports submitted to the Court
RALEIGH, N.C. – Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement, today released a summary of the five compliance reports he submitted to the United States District Court for the District of Columbia. This summary includes information about the banks’ (Bank of America, Chase, Citi, ResCap Parties and Wells Fargo) compliance with the Settlement’s servicing rules (click each bank’s name to see its scorecard).
“Over the past six months my team and I have tested the banks’ compliance,” said Smith. “My testing through the end of last year resulted in three testing fails, and I can disclose five additional fails in 2013. These results demonstrate that the Settlement is allowing us to uncover areas in which more work needs to be done. The banks are now working to correct these errors and will be tested again to determine their level of improvement.
“These findings, combined with the complaints I have heard from attorneys general, counselors and distressed borrowers, tell me there is still work to be done. While I believe distressed servicing is better this year than it was last, it is not yet where it needs to be. My team and I will continue our efforts to improve it.
“Specifically, I have heard regularly in the last year about issues with the loan modification process, single points of contact and billing and statement inaccuracies. The Settlement anticipated that there may be a need for additional tests, and, as such, allows me to create more. Accordingly, I am negotiating more stringent testing with the banks now to better address these issues.
“While there is more work to be done, I remain confident that the Settlement is helping to improve the mortgage finance system. I hope this report will help contribute to the conversation on this topic, and I look forward to making additional information public as this process continues.”
About the Office of Mortgage Settlement Oversight
More information about the National Mortgage Settlement is available at www.nationalmortgagesettlement.com. Further information about Joseph Smith and the Office of Mortgage Settlement Oversight is available at www.mortgageoversight.com.