National Foreclosure Settlement Rules Tweaked Amid Complaints

October 1, 2013
Chicago Tribune  
mortgage lending news

A committee tasked with monitoring implementation of the $25 billion national foreclosure settlement on Oct. 1 announced updated procedures that will require the five participating banks to give homeowners 60 days, instead of 30, to submit additional documents that might help them obtain a modification before the home goes into foreclosure or moves toward a foreclosure-related sale.

This and other changes come in response to complaints that the banks -- Bank of America, Wells Fargo, JPMorgan Chase, Citigroup, and Ally/GMAC -- are not complying with many of the 304 standards they agreed to as part of the pact with the Justice Department, state attorneys general, and the banks. Bank of American and Wells Fargo also agreed to adopt other new policies, including being more specific about what missing information is required from borrowers; escalating modification applications when customers are repeatedly being asked for more documentation; and establishing a direct contact for the housing counseling agencies working with distressed homeowners.










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