Guide to the Foreclosure Settlement: A Model for National Standards
“We are not sure how far down the line we’ll go to seek agreements, but we obviously will move in that direction.”
--Tom Miller, Attorney General, State of Iowa
The recent $25 billion foreclosure settlement applies to only five servicers. But the government regulators, by their own admission, will be looking to apply some of the same restrictions and guidelines to a much larger group of servicers. Legal experts agree that national servicing standards will likely look a lot like the new rules that the five largest servicers now have to live by.
Inside Mortgage Finance breaks down the settlement requirements in the new easy-to-understand Guide to the Foreclosure Settlement: A Model for National Standards. This special report covers all aspects of the agreement and includes analysis from those directly involved in the negotiation. You’ll understand
- What the settlement sets out as servicing standards,
- What is required in terms of loan modifications, refinances, and other loss mitigation,
- How the agreement will be enforced, and
- How it all applies to other servicers.
As AG Miller said, “Everybody [should] take the settlement’s servicing standards very seriously, to implement them to the fullest extent that you can.”
Learn what is headed your way and get a start on adapting your systems.
Partial Table of Contents:
National Servicing Standards
+ Foreclosure Information and Documentation
+ Third-Party Provider Oversight
+ Dual Track Foreclosures
+ Single Point of Contact
+ Online Loan Portal
+ Loan Mod Timelines
+ Independent Evaluation of Mod Denials
+ Transfer of Servicing
+ Protections for Military Personnel
+ Servicing Fees
Loan Modification Requirements
+ Consumer Relief Requirements
+ Principal Reduction
+ First-Lien Mods
+ Second-Lien Portfolio Mods
+ Actions by Subservicers
Refinance and Other Loss Mitigation Requirements
+ Short Sales
+ Deficiency Waivers
+ Forbearance for Unemployed Borrowers
Enforcement
+ Settlement Monitor
+ Internal Review Group
+ Quarterly Reports
+ Potential Violations and Right to Cure
+ Releases from Liability
+ Implementation by Servicers
