After ponying up billions in a landmark settlement, it appears many servicers have learned their lesson
Some of the biggest US mortgage servicers appear to be improving their treatment of borrowers facing potential foreclosure.
Court-appointed monitor Joseph A. Smith said the banks have remedied issues like failing to notify customers when loan-modification documents are missing or failing to terminate forced-place insurance policies on time, according to a Bloomberg report.
The monitoring comes as a result of a 2012 settlement with the US Justice Department and 29 state attorneys general. In addition to improving servicing standards, banks were required to pay a total of $25 billion to customers in the form of short sales or loan forgiveness, Bloomberg reported.
Despite the improvement, there’s still work to do, Smith said. For instance, Walter Investment Management subsidiary Green Tree failed eight separate quality tests, failing to confirm delinquencies before initiating foreclosures, provide timely foreclosure notifications or accurately state how much borrowers owed during bankruptcies, according to Bloomberg.
“These results show that Green Tree must make significant changes,” Smith told Bloomberg.
Court-appointed monitor Joseph A. Smith said the banks have remedied issues like failing to notify customers when loan-modification documents are missing or failing to terminate forced-place insurance policies on time, according to a Bloomberg report.
The monitoring comes as a result of a 2012 settlement with the US Justice Department and 29 state attorneys general. In addition to improving servicing standards, banks were required to pay a total of $25 billion to customers in the form of short sales or loan forgiveness, Bloomberg reported.
Despite the improvement, there’s still work to do, Smith said. For instance, Walter Investment Management subsidiary Green Tree failed eight separate quality tests, failing to confirm delinquencies before initiating foreclosures, provide timely foreclosure notifications or accurately state how much borrowers owed during bankruptcies, according to Bloomberg.
“These results show that Green Tree must make significant changes,” Smith told Bloomberg.
