Report on Bank Follow-Through Will Be Released in May

by on Foreclosures

The Glass Wall of a Building with the Inscription Bank

Who has been at the center of the foreclosure settlement agreements? Big banks. Over the last few years these major banks who were accused of a wide array of unethical practices, including robo-signing, have been held to the fire and were part of several foreclosure settlement agreements.

Many people firmly believe that these banks merely received a slap on the wrist for the massive amounts of damage they caused to the real estate market and victims of their actions, while banks are glad that these settlement agreements are finally behind them.

Over the years, there have been many accusations that revolve around these major lenders being functioning without much oversight. In the opinion of those who hold these beliefs, the lack of oversight means that nothing will stop these lenders from performing the same unethical actions in the future – causing another massive real estate market crash.

Last year many of these banks experienced lack of revenue growth – with the exception of Wells Fargo, which had a 6.3% increase – and therefore definitely felt some pain from these agreements. However, have these banks been following through with their part of these agreements?

Monitoring the Banks of the Mortgage Settlement Agreements

The $25 billion foreclosure settlement agreement with the five major banks requires these banks to put into place over 300 new standards. However, are these banks adhering to these new requirements? Fortunately, we will all find out come May. However, will the information we receive be accurate?

Each of the five banks has an internal review group that is primarily responsible for ensuring that the lenders uphold their part of the agreement. However, these groups are internal. As we saw with the “independent” foreclosure review process that resulted in the most recent foreclosure settlement agreement, these lenders tend to blur the line of the word “independent” and have been known to hold the jobs of these reviewers over their heads in an effort to get the desired results. Will this happen again?

Apparently the National Mortgage Settlement is taking this matter into consideration and has both law firms and consultants in place to help protect against this issue from repeating itself in this situation.

In conclusion, only time will tell whether or not these reports will be accurate or if lenders are truly holding up their end of the deal. Either way, the first report is scheduled to be released in May. Regardless of these results, the real estate market is making progress toward recovery as foreclosures start to return to pre-real estate market crash levels – which is great news for those looking for a more stable real estate market and progressing economy.