Pursuits
Banks That Flunked Servicing Tests Face Watchdog
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Mortgage firms including Bank of America Corp. that repeatedly ignored rules meant to improve service for struggling homeowners said they’re on the verge of complying with standards ordered in a $25 billion settlement.
After failing to adhere to at least two separate sets of servicing guidelines since 2010, lenders are preparing for more than 300 rules that take effect next month on loan modifications, fees, foreclosures, and the treatment of military personnel. For the first time, banks face a watchdog dedicated to keeping them honest, Joseph A. Smith, North Carolina’s ex-commissioner of banks.