Alert June 25, 2013

National Mortgage Settlement Monitor Releases Report

The monitor for the National Mortgage Settlement released a progress report on the mortgage servicers’ compliance with the National Mortgage Settlement’s servicing guidelines. The report, "Summary of Compliance: A Report from the Monitor of the National Mortgage Settlement," summarizes the reports from the individual mortgage servicers and noted that the National Mortgage Settlement is "uncovering problems" with servicers’ performance in three primary areas: (1) the loan modification process; (2) providing single points of contact for distressed borrowers and (3) maintaining accurate billing and statement records. The report also indicated that the monitor intends to exercise his authority under the National Mortgage Settlement to impose discretionary metrics on servicers in order to address these areas, and that he expects to submit additional reports on consumer relief during the next six weeks.