Servicers Still Not Living Up to Monitor's Mandates – NMP Skip to main content

Servicers Still Not Living Up to Monitor's Mandates

Dec 04, 2013

Joseph A. Smith Jr., Monitor of the National Mortgage Settlement (NMS), has released a summary of five compliance reports he filed with the U.S. District Court for the District of Columbia. This summary details the results of his tests to determine Bank of America, Chase, Citi, ResCap Parties and Wells Fargo's compliance with the NMS servicing rules from Jan. 1 to June 30, 2013 , as well as actions taken to address metrics they failed in 2012. “My testing confirmed six fails in the first quarter of 2013 and one in the second quarter of 2013. The banks are all taking action to address the failures through detailed corrective action plans," Smith said. "The results I've discovered, along with the discussions I’ve had with attorneys general, counselors, advocates and distressed borrowers over the past year, have shaped four additional metrics, or tests, I recently created to ensure the banks' compliance. The semetrics address consumer concerns relating to the loan modification process, single points of contact and billing statement accuracy. I will begin testing these new metrics next year." The banks still have additional work to do in their efforts to fully comply with the National Mortgage Settlement and to regain their customers’ trust; however, I am hopeful that the corrective action plans and the new metrics will result in meaningful improvement in how the servicers treat their customers. “My colleagues and I are currently working to verify four banks’ consumer relief activities and I plan to file my final set of reports to the Court detailing my findings early next year," said Smith. "My compliance testing and reporting will continue and I look forward to sharing my findings with the Court and the public as this important process moves forward." “The Independent Monitor’s ongoing work is playing a vital role in our work to reform the servicing industry and hold it accountable for how they treat homeowners," said HUD Secretary Shaun Donovan. "While today’s report shows the National Mortgage Settlement’s compliance structure is identifying abuses and rectifying problems for consumers, it’s clear that these financial institutions still need to improve in a number of areas. In particular, the banks must do a better job sending notices and communicating with struggling homeowners in a timely manner. In the next set of reports we expect that they will have rectified these problems or they will face severe penalties.”
About the author
Published
Dec 04, 2013
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026