Big Banks Still Messing Up Mortgage Debt Collections
NEW YORK (TheStreet) -- The largest U.S. banks are still failing to comply with several aspects of a national mortgage servicing settlement reached in 2012.
Joseph Smith, a monitor established by the settlement, released an update on Wednesday noting failure to comply with seven servicing standards but "have begun corrective actions and where necessary remediation," according to a statement on his office's Web site.
The $25 billion settlement outlined more than 300 servicing standards that required the banks to respond to borrowers in a timely manner and make it easier for homeowners seeking relief.
Smith said the settlement is "doing what it is supposed to do: measuring with rigor conduct by the servicers in the marketplace and correcting it where necessary."The banks that agreed to the settlement are Citigroup (C), Wells Fargo (WFC), Bank of America (BAC), JPMorgan Chase (JPM), and several parties tied to the former GMAC, which was broken up following a government bailout in 2008.
In an interim report released in October, Smith credited Bank of America, Citigroup, JPMorgan Chase and Wells Fargo with "significant progress" in fulfilling their obligations under the settlement for providing $15.3 billion in refinancing and consumer relief as of Dec. 31, 2012. The failures that were the subject of Tuesday's report cover the first six months of 2013. -- Written by Dan Freed in New York. Follow @dan_freed
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