In February 2012, the nation’s five largest mortgage servicing companies (Bank of America, Citi, JPMorgan Chase, Wells Fargo, and GMAC/Ally) reached an agreement with the attorneys general of 49 states (excluding Oklahoma) and the federal government to settle claims that servicers had broken the law when foreclosing on thousands of properties across the country. The settlement imposed new servicer obligations which included stricter mortgage servicing standards.
The National Housing Resource Center (NHRC) conducted a national survey on servicer compliance with the new servicing standards, collecting data and insight from 212 respondents representing 28 states and the District of Columbia. Findings from this report indicated that many servicers have not complied with the new requirements; it also revealed an alarming level of fair lending problems. The results of this study were released yesterday and the report is available on the NHRC website at: NMS_Findings.pdf.