A new study supports complaints by state prosecutors that some of the nation’s biggest banks have violated the terms of the $25 billion national mortgage settlement, a landmark agreement to clean up shoddy foreclosure practices.
The court-appointed monitor of the settlement said in a report Wednesday that Bank of America, Citigroup, JPMorgan Chase and Wells Fargo have dragged their feet in processing homeowners’ requests for lower monthly loan payments.
These are the same charges being lobbed against the banks by Illinois Attorney General Lisa Madigan and New York Attorney General Eric Schneiderman. The two were among the 49 state attorneys general who brokered the settlement with the top five mortgage servicers last year.
The deal was supposed to ensure that struggling homeowners would not have to endure the same miscommunication, delays and botched paperwork that was commonplace after the housing bust. But, according the monitor, some things haven’t changed.
Four out of five banks failed at least one of the 29 metrics the monitor used to measure their compliance with the 304 servicing standards outlined in the settlement.