Recent servicing compliance tests applied to the nation’s top financial institutions resulted in five test fails among top mortgage servicers, including Bank of America, JP Morgan Chase, Citi and Wells Fargo, according to Joseph Smith, monitor of the National Mortgage Settlement.
They Said It
"Structuring the AG settlement credits this way makes it more of an additive for principal reduction," Kingsley said. "This way, more borrowers could potentially receive some form of reduced principal."
No one can deny that the last few years have been good for companies that are in the mortgage servicing business. But as the U.S. economy continues to recover and historic default and foreclosure rates normalize, some of the firms in this space are feeling the pressure to offer more in order to maintain their business levels.