It’s been about a month since five of the country’s largest mortgage servicers were required to be in full compliance with 320 Servicing Standards. Banks were given 180 days to comply with the U.S. Department of Justice and 49 state attorney general’s servicing standards, and on October 2, 2012, everyone was required to be in compliance.
The five banks included in the national settlement are Ally, Bank of America, Citi, JPMorgan Chase, and Wells Fargo. 320 Servicing Standards are aimed at assisting borrowers who were wronged by mortgage servicers. The new standards include things like foreclosure document execution, borrower communication, training for loss mitigation staff, and creating a single point of contact to streamline the experience for borrowers.
Joseph A. Smith, Jr., the designated settlement monitor, will continue to review the banks’ progress as they work to comply with the terms of the agreement. He adds, “I will conduct careful and thorough reviews of the banks’ processes to assure and verify that they are compliant with the settlement’s rules.”
As of now, all of the banks involved say they have worked diligently to comply with the 320 Servicing Standards. Smith will evaluate the third-quarter and fourth-quarter performance of each servicer against all 29 metrics beginning in the first quarter of 2013.