Press Releases

Frank Releases Statement on Mortgage Servicer Agreement

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Washington, DC, April 15, 2011 | comments

WASHINGTON – Congressman Barney released the following statement in response to the announcement by federal banking regulators that they had successfully negotiated a consent agreement with fourteen of the nation’s largest mortgage servicers.  The agreement, which follows in the wake of examinations by the agencies of reports of widespread, potentially illegal foreclosure practices by mortgage servicers, sets down legally-enforceable orders regarding proper procedures for residential loan servicing and foreclosure processing.

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Congressman Barney released the following statement in response to the announcement by federal banking regulators that they had successfully negotiated a consent agreement with fourteen of the nation’s largest mortgage servicers.  The agreement, which follows in the wake of examinations by the agencies of reports of widespread, potentially illegal foreclosure practices by mortgage servicers, sets down legally-enforceable orders regarding proper procedures for residential loan servicing and foreclosure processing.  

The agreement was jointly negotiated by the four federal agencies overseeing aspects of the mortgage market, including the Federal Reserve, the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC). Among the 14 major mortgage servicers party to the agreement are the Bank of America, Citibank, JPMorgan Chase, MetLife Bank, HSBC, U.S. Bank, Wells Fargo, and others. 

The negotiated consent agreement does not supersede the ongoing settlement efforts between the state Attorneys General and large mortgage servicers.   

In response to the announcement of the consent agreement, Congressman Frank released this statement:

“With regard to the recent enforcement orders by the federal banking regulators against the nation’s 14 largest mortgage servicers, I appreciate the recognition by the regulators that the status quo for mortgage servicing is intolerable.  However, the enforcement orders alone are insufficient to address past problems and future standards.”

“First, I want to make it very clear that these enforcement orders are in no way preemptive of any state actions to address mortgage servicing standards, nor are they intended to be the final word on this issue. Second, with respect to the terms of the consent orders, they call for a bank employee to serve as a single point of contact for borrowers to obtain loan modification and loss mitigation information. I believe that it is also important to require servicers to make in-person contact with the borrower facing foreclosure if there has been no communication with the borrower for at least 45 days. Obviously, in-person service will not be possible or necessary for every troubled borrower, but in certain circumstances it should be required and can readily be achieved.”

Link to press release from the OTS 

Link to press release from the OCC

Link to press release from the FDIC

Link to press release from the Federal Reserve

  

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