On March 12, 2012, the United States Federal Government released details of a roughly $25 billion dollar national mortgage settlement with the country’s five major loan servicers: Ally, Bank of America, JPMorgan Chase, Wells Fargo and Citi.
This agreement, stemming from improper foreclosures and deceptive mortgage practices, is designed to provide relief to eligible homeowners and prevent future abuses. Along with the settlement money, loan servicers are also required to apply across-the-board standards in an attempt to improve borrower communication and provide consistency among the five loan servicers.
These standards should help keep families in their homes and also should streamline the short sale and other loss mitigation processes.
Five quick things to take away from the settlement that will have an impact on real estate transactions.
- Short Sale Timeline
- No Dual Tracking
- Single Point of Contact
- Establishment of Loan Portal
- Strong Enforcement Mechanism
*More to come on these five points in subsequent posts.