Today is the first day that the servicing standards for the foreclosure fraud settlement go into effect. The standards, 304 in all, include large changes to the servicer business model, like banning robo-signing, mandating quick decision making on loan modification, providing borrowers with options to foreclosure, establishing a single point of contact and ending “dual [...]

Katherine Porter, the monitor tasked with specific oversight for California’s foreclosure fraud settlement, says what most of us could have suspected: the servicers are dragging their feet on compliance. The California monitor of the $25 billion national mortgage servicing settlement received roughly 1,100 complaints in the last month from borrowers reporting a slow uptake to [...]

California’s side deal to the foreclosure fraud settlement is a much simpler document, and one focused primarily on principal reductions. Under the agreement, three of the five banks in the settlement – Wells Fargo, Bank of America and JPMorgan Chase – must engage in $12 billion in principal reductions, deeds-in-lieu or short sales in the [...]