Four out of the nation’s five largest servicers — Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo — are failing to comply with servicing rules set forth in the $25 billion national mortgage settlement reached last year, according to a report released Wednesday by Joseph A. Smith Jr., the settlement’s court-appointed monitor.

Smith’s office used 29 metrics to test how well the five servicers were following the settlement’s 304 servicing standards. Citigroup fared the worst, getting failing marks for three metrics, followed by Bank of America and Chase with two failing marks, and Wells Fargo with one failing mark. Only ResCap, formerly Ally Financial, passed all metrics.

The most common problem among the servicers, particularly Citigroup, Bank of America and Wells Fargo, was the failure to notify homeowners of any missing documents in their loan modification requests within five days of receipt, the Washington Post reported. Citigroup and Bank of America were also cited for providing inaccurate information to borrowers before initiating a foreclosure, the paper said.

“These results demonstrate that the settlement is allowing us to uncover areas in which more work needs to be done. The banks are now working to correct these errors and will be tested again to determine their level of improvement,” Smith said in a statement.

Source: Office of Mortgage Settlement Oversight

Back to top
Will you attend ICLV virtually or in-person? The agenda is packed with stellar speakers and sessions.Learn More×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription