MBA task force to examine mortgage servicing future
The Mortgage Bankers Association formed a 25-member task force to examine and issue recommendations for how to re-tool the mortgage servicing industry. The country's largest mortgage servicers came under fire in recent months when several, including Bank of America (BAC), JPMorgan Chase (JPM) and Ally Financial (GJM) suspended REO sales after employees signed foreclosure affidavits en masse without reviewing documentation. Since then, 50 state attorneys general offices and several federal regulators have launched investigations. Possible settlements may be looming. The MBA's Council on Residential Mortgage Servicing for the 21st Century will hold a one-day summit on Jan. 19 in Washington. Industry leaders, economists, academics, policymakers and consumer activists are on the invitation list. After the summit, the council will meet on a regular basis to discuss how the industry can change. "The residential mortgage servicing sector has been operating in a time of unprecedented challenges, presenting us with a unique opportunity to explore potential improvements to business practices, regulations and laws affecting the servicing sector and consumers," MBA Chairman Michael Berman said. Write to Jon Prior.