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, it seems 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.
The report “affirms that the pattern of violations by Wells Fargo that my office documented in New York is harming homeowners nationwide,” said Schneiderman, who threatened to sue Wells Fargo and Bank of America in May over the violations. “These flagrant violations put homeowners in New York and across the nation at greater risk of foreclosure.”
The most common problem found among the servicers, in particular at Citigroup, Bank of America and Wells Fargo, was failure to notify homeowners of any missing documents in their modification requests within five days of receipt, according to the settlement monitor, Joseph A. Smith Jr. Citigroup and Bank of America were also cited for providing inaccurate information in letters they must send to borrowers before beginning a foreclosure.