The latest report card is in for residential loan servicers included is a massive servicer settlement three years ago, and the group fared well.
No failed metrics were uncovered for Bank of America, N.A.; Green Tree Servicing LLC; J.P. Morgan Chase Bank, N.A.; or Wells Fargo & Co.
The performance evaluations were required as part of the $25 billion servicer settlement reached in 2012 with state attorneys general and federal agencies.
The performance was reviewed in the Compliance Update report released Tuesday by the
Monitor of the National Mortgage Settlement, Joseph A. Smith Jr.
It was Smith’s fifth set of compliance reports.
A total of 34 metrics were evaluated.
CitiMortgage Inc. had one failed metric, “Metric 30,” in the third quarter related to the handling of loan modifications.
“Metric 30 evaluates written communications to borrowers whose loan modification application was ultimately declined due to missing or incomplete documents,” the report said. “Citi submitted a [corrective action plan] that identified and addressed the root cause of the fail.”
Ocwen Loan Servicing LLC’s performance was excluded because its
compliance testing results for the first and second quarters of last year are still being reviewed.
While bankrupt Residential Capital LLC and its affiliates were part of the original settlement, almost all of its servicing assets were sold off to either Ocwen and Walter Investment Management Corp.-subsidiary Green Tree — leaving them accountable for meeting the terms of the servicing settlement.
“The second half of 2014 included cure period testing of ten metrics the servicers had previously failed,” Smith stated in the report. “The cure period is the servicers’ chance to remedy their errors and my time to test the effectiveness of their corrective actions. In each instance, the corrective action plans appeared to have addressed prior fails.”
