Senate considers national mortgage-servicing standard

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?)

And here’s one from a few weeks ago with more detail.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
This entry was posted in The Buzz. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *