Joseph Smith has assumed his duties as the monitor for the $26 billion foreclosure settlement and he will be responsible for making sure five mega-servicers live up to the terms of the agreement and reform their servicing and foreclosure practices.
The former North Carolina bank commissioner assumed his duties late Thursday after a federal judge approved the settlement that 49 state attorneys general and the Justice Department hammered out with JPMorgan Chase, Bank of America, Citigroup, Ally Financial, and Wells Fargo & Co.
"In keeping with the charge I've received from the court and the parties to the settlement, I have opened the Office of Mortgage Settlement Oversight and begun to carry out my duties as monitor," Smith said.
From his Raleigh, N.C., office, Smith will receive periodic reports from the servicers and oversee their compliance with the settlement -- which provides remediation for homeowners that were financially harmed by wrongful foreclosures.
In cases of non-compliance, Smith can recommend penalties and seek injunctive relief from the court to enforce the settlement.
"The mortgage settlement is a bipartisan achievement that holds promise for millions of people," Smith said. "By itself, this settlement will not remedy every problem that the system faces. But trust in our mortgage system can move forward if we use this opportunity to show fairness, transparency and accountability. This is a responsibility I take seriously."
