- July 10, 2015
- Posted by: AGreer
- Category: Regulation
Citigroup failed one of the monitoring tests performed as part of the national mortgage settlement, according to new reports filed by NMS monitor Joseph Smith A. Jr.
During the third quarter of 2014, Citigroup failed Metric 30, which assesses written communication with borrowers whose loan modification applications were declined because of missing or incomplete documents. Citigroup was the only financial institution to fail a test during the third and fourth quarters of last year, according to the monitor’s report.
Bank of America, JPMorgan Chase, Green Tree and Wells Fargo all passed their tests during this period of time, Smith said.
Following its failed test, Citigroup submitted a Corrective Action Plan for the metric, which Smith approved. After it was implemented, Smith said that the fourth quarter’s round of testing showed that the problems were cured.
“Citi remains committed to fulfilling the terms of the national mortgage settlement for the best interests of its clients,” a Citigroup spokesman said in an email. “One of our top priorities is continuing to work with distressed borrowers to help them avoid potential foreclosure and remain in their homes.”
In addition to Metric 30, the NMS monitor determined in the fourth quarter that Citigroup had solved issues that previously resulted in a failed test for Metric 20, which measures compliance with the timeline for loan modification decisions and notifications.
Similarly, Smith noted that Bank of America passed tests for two metrics it previously failed pertaining to preforeclosure initiation notifications and compliance with the timeline for collecting loan modification documents.
The latest report did not address Ocwen, which the monitor reported issues with settlement compliance in April.
“My team is still in the process of reviewing Ocwen’s compliance testing for the first and second quarters of 2014. I will report to the court and the public when I am confident that the results are complete. It is important that we take the time to verify the accuracy of Ocwen’s work,” Smith said.