Aug 02, 2011
Senate considers national mortgage-servicing standard
02 Aug 2011
Posted by Andrew Kantor
The Senate Banking Committee is looking to set a new national standard for mortgage services after what Housing Wire calls — in a rather amusing understatement — “weaknesses in the process that arose last year.”
Those “weaknessses” included robo-signing of legal documents, dual-track foreclosures, and “unnecessarily delayed modifications.”
The idea (at least in general) has the backing of major lenders; they like the idea of a single, national standard. But smaller banks and credit unions — which pointed out that they weren’t part of the problem — are asking to be exempt from the guidelines.
B. Dan Berger, executive VP of the National Association of Credit Unions, said in a letter to Senate committee leaders,
“In short, credit unions have not participated in the practices that have led to discussions about the worthiness of national mortgage servicing standards and should not be unjustly punished for the shortcomings of institutions that have.
“While it is important that the bad actors who failed thousands of their borrowers are held accountable, we would oppose extending any new compliance burden stemming from national mortgage servicing standards onto good actors such as credit unions.”
Click here for the full story at Housing Wire. (Can you tell we love that site?)