TALLAHASSEE, Fla. – December 5, 2013 – (RealEstateRama) — Attorney General Pam Bondi released the following statement on the National Mortgage Settlement Monitor’s Second Compliance Report concerning the Monitor’s review of the five banks’ compliance with the settlement’s servicing standards.
“While this second report indicates that two of the five banks successfully complied with all of the Monitor’s testing metrics, it is clear that, overall, the banks must substantially improve their efforts to better serve distressed borrowers and to comply with the servicing terms of the settlement agreement. My office will continue to work diligently on behalf of Florida’s homeowners to ensure that they promptly receive the relief they are entitled to under the settlement. The banks will be held accountable to the obligations they made under the settlement.”
The independent Monitor’s report provides results from testing conducted by the Monitor regarding improvements in the banks’ servicing standards required under the National Mortgage Settlement. The report covers compliance results during two consecutive three-month test periods, January 1 through March 31, 2013 and April 1 through June 30, 2013. The report concludes that the banks had 7 fails involving 5 of the 29 testing metrics, six in the first quarter of 2013 and one in the second quarter. The banks have implemented, and in some instances completed or are in the process of implementing, the corrective action plans mandated by the settlement to resolve these compliance issues. The effectiveness of these plans is currently being assessed by the Monitor and will be the subject of a future report once testing is completed. Highlights of the Monitor’s report include the following:
Bank of America, JP Morgan Chase and CitiMortgage all failed Metric 6, which tests whether loans are delinquent at the time a foreclosure is initiated and whether account information is accurate in pre-foreclosure notification letters.
In addition to Metric 6, Bank of America failed two additional metrics: Metric 5, which tests the accuracy of amounts the bank claims to be due from borrowers in affidavits filed by the bank in bankruptcy proceedings; and Metric 19, which tests the timeliness of the banks’ notification to borrowers of missing documents or information in the loan modification application.
In addition to Metric 6, J.P. Morgan Chase failed Metric 19, which tests whether the bank timely approves or denies a first lien loan modification application within 30 days of receipt of all documentation, and communicates its decision on the application to the borrower within ten days of the decision.
In addition to Metric 6, CitiMortgage failed Metric 23, which tests whether the bank notifies borrowers of any missing documents within 30 days of receipt of the borrower request for a short sale.
Wells Fargo and ResCap/Ally/GMAC were found in compliance with all tested metrics.
For more information regarding the report, visit MortgageOversight.com.
Media Contact: Jenn Meale
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