When prudential regulators announced a deal to end foreclosure reviews at 13 servicing firms earlier this year, the one hold out was Residential Capital, the former mortgage subsidiary of Ally Financial.
But that changed Tuesday when the Wall Street Journal reported ResCap reached a tentative deal with the Federal Reserve to become the 14th servicer to end its costly independent foreclosure review process. The reviews were initially launched as part of a 2011 accord between regulators and servicers.
The initial servicing agreement required the affected banks to follow a series of guidelines while contractors conducted reviews of completed foreclosures looking for errors and inconsistencies.
The extensive loan probes were ended at 13 of the 14 impacted servicing shops earlier this year, with ResCap being the only hold out until this week.