In a new letter, ten Senate Democrats have asked the Comptroller of the Currency to “consider” servicing standards favored by the state attorneys general as a way to ease foreclosure conditions for struggling mortgagors.
The letter, which was sent to OCC chief John Walsh late Tuesday, was signed by several members of the Senate Banking Committee, including panel chairman Tim Johnson, D-S.D.
“It is clear that we need to stabilize our housing market, and the Office of the Comptroller of the Currency has a pivotal role to play in utilizing the full scope of its authority to correct the weakness of servicers in terms of foreclosure governance,” the 10 write.
The letter comes amid reports that the nation’s megaservicers and AGs are still far apart on reaching some type of global settlement regarding servicing shortfalls that led to the nation’s ‘robosigning’ crisis.
Industry officials close to the matter say the AGs are still insisting on a large cash payment by the 14 servicers, and a request that the firms slow the process of foreclosures, giving homeowners more time to find a loan modification option, if at all possible.
One attorney noted that the AGs also are pushing for more judicial-based foreclosures.
The 14 have been asked to submit action plans on how they will strengthen their foreclosure practices.
The Senators said they want the OCC “to ensure that servicers not only account for past harms, but also take steps to prevent future servicing deficiencies so that homeowners going forward are treated fairly.”
