|December 4, 2013
Contact: Whitney Ray
Phone: (850) 245-0150
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TALLAHASSEE, Fla. –Attorney General Pam Bondi released the following statement on the National Mortgage Settlement Monitor’s Second Compliance Report concerning the Monitor’s review of the five banks’ compliance with the settlement’s servicing standards.
"While this second report indicates that two of the five banks successfully complied with all of the Monitor’s testing metrics, it is clear that, overall, the banks must substantially improve their efforts to better serve distressed borrowers and to comply with the servicing terms of the settlement agreement. My office will continue to work diligently on behalf of Florida’s homeowners to ensure that they promptly receive the relief they are entitled to under the settlement. The banks will be held accountable to the obligations they made under the settlement.”
The independent Monitor's report provides results from testing conducted by the Monitor regarding improvements in the banks' servicing standards required under the National Mortgage Settlement. The report covers compliance results during two consecutive three-month test periods, January 1 through March 31, 2013 and April 1 through June 30, 2013. The report concludes that the banks had 7 fails involving 5 of the 29 testing metrics, six in the first quarter of 2013 and one in the second quarter. The banks have implemented, and in some instances completed or are in the process of implementing, the corrective action plans mandated by the settlement to resolve these compliance issues. The effectiveness of these plans is currently being assessed by the Monitor and will be the subject of a future report once testing is completed. Highlights of the Monitor's report include the following:
Bank of America, JP Morgan Chase and CitiMortgage all failed Metric 6, which tests whether loans are delinquent at the time a foreclosure is initiated and whether account information is accurate in pre-foreclosure notification letters.
For more information regarding the report, visit MortgageOversight.com.