It’s been a long time coming, but the Office of the Comptroller of the Currency (OCC) has finally notified mortgage loan servicers to shape up and correct their foreclosure processing.
The OCC recently issued this guidance memo to mortgage servicers requiring them to improve foreclosure processing, identify borrowers they have damaged, and remediate borrowers who have been damaged.
The guidance also requires a single point of contact between delinquent borrowers and the servicers to avoid the problem of “dual tracking” ~ foreclosing on borrowers who have been (mis)led to believe they would be given a loan modification.
Time will tell if this is an adequate remedy.
I suspect that more regulation will be required, but it’s a step in the right direction.
One weakness with this guidance is that it requires the servicing entities to complete a “self assessment” of their procedures.
Gee ~ bet those guys will really be hard on themselves, won’t they???
Why not have an independent, unbiased third party conduct those assessments and recommend changes?
While I dislike additional governmental intrusion into free markets, I believe this ongoing short sale and foreclosure crisis begs for mandated federal standards for the mortgage servicing industry.