Magazine article Mortgage Banking

NY Dept. of Financial Services Wins Agreements with Three Servicers

Magazine article Mortgage Banking

NY Dept. of Financial Services Wins Agreements with Three Servicers

Article excerpt

On Nov. 10, New York Superintendent of Financial Services Benjamin M. Lawsky announced his department had secured agreements with Morgan Stanley, New York (and Irving, Texas based Saxon Mortgage Services Inc.--its mortgage servicer); American Home Mortgage Servicing Inc., Coppell, Texas; and Vericrest Financial Inc., Oklahoma City, to reform their servicing practices. The agreement is modeled on an earlier one entered into with Goldman Sachs Bank, Ocwen Financial and Litton Loan Servicing, according to a press release issued by New York's Department of Financial Services (DFS).

"Today's agreements are an important step forward in cleaning up some of the mortgage industry's most troubling practices. These new reforms are now spreading out in the industry at a time when homeowners truly need relief in the wake of the financial crisis. We will continue to do everything we can to make these reforms the norm in the servicing industry," Lawsky said.

He added, "I commend Morgan Stanley, Saxon, American Home and Vericrest for being leaders in agreeing to implement this new higher standard to protect homeowners from abuse, and I urge others in the industry to follow their lead."

Some of the provisions included in the agreement would redress practices such as robo-signing; weak internal controls that compromise the accuracy of foreclosure documents; improper denials of loan modifications; dual tracking of borrowers into modificalion and foreclosure; and failure to offer a single point of contact. …

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