Joseph Smith, monitor of the $25 billion foreclosure settlement with the five largest mortgage servicers, hired five more firms to help him oversee homeowner relief given under the agreement.
Smith hired BKD, Baker Tilly Virchow Krause, Crowe Horwath, Grant Thornton and McGladrey to oversee servicer compliance.
The monitor office contracted with BDO Consulting in June as the primary firm working with Smith.
“Over the past month I have worked closely with BDO to select the secondary professional firms, and these firms, working under BDO’s leadership, will help to ensure that the banks are reviewed thoroughly and effectively,” Smith said in a statement. “I am confident that these six accounting firms make up the blend we need to fully implement the settlement.”
Servicers that signed onto the deal to settle foreclosure abuses and documentation problems in the past will fund the monitor office budget. Smith sent out a request for qualifications to more than 40 firms earlier in the year.
Bank of America (BAC), JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and Ally Financial will provide $20 billion on relief through refinancing, principal reductions, short sales and other modifications, according to the settlement filed in March.
Smith and his newly hired consultant firms will also monitor how the servicers adjust to new standards under the agreement as well.
