Sub Servicers Provide Modification Data to State Bank Regulators
Subprime servicers are starting to provide data on their loan modification efforts to a working group of state attorneys generals and banking regulators, according to New York banking superintendent Richard Neiman.
"We are now in the process of analyzing that data as it comes in from the servicers," Mr. Neiman said.
The multistate working group, headed by Iowa attorney general Tom Miller, began working with subprime servicers last summer to make sure distressed homeowners are getting the assistance they need to avoid foreclosure.
However, Mr. Miller's group has been shut out of the loan modification efforts lead by Treasury secretary Henry Paulson and the Hope Now alliance of servicers.
"I found it curious and disappointing that the Treasury's Hope Now alliance did not include a state government representative," Mr. Neiman told the Exchequer Club.
"This omission could undermine the group's effectiveness, because it is missing the perspective from an important regulatory partner, which is the sole supervisor for a significant portion of the mortgage industry," the New York banking superintendent said.
Servicers have been reluctant to provide information about their success rate in meeting with borrowers and arranging loan modifications.
In several speeches, Secretary Paulson has stressed the need for servicers to report detailed loan modification data to Hope Now to measure the effectiveness of their foreclosure prevention efforts. It is unclear if Treasury is receiving those data. Additional reporting will make the overall situation more clear to regulators. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/