HUD and the U.S. Dept. of the Treasury recently released the May edition of the Obama Administration’s Housing Scorecard, which now includes detailed assessments of the 10 largest mortgage servicers participating in the Making Home Affordable Program.
Since the inception of the Making Home Affordable Program, Treasury has required participating servicers to take specific actions to improve their servicing processes. The new Servicer Assessments summarize performance for the 10 largest Making Home Affordable participating servicers from reviews largely conducted throughout the first quarter of 2011 on three categories of program implementation: identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management and governance. Based on the reviews for this quarter, four servicers have been identified as needing substantial improvement and six servicers have been identified as needing moderate improvement. The servicers identified as in need of substantial improvement are:
- Bank of America, NA;
- J.P. Morgan Chase Bank, N.A.;
- Ocwen Loan Servicing, LLC; and
- Wells Fargo Bank, N.A.
While servicers are required to address all instances of non-compliance, beginning this month, the Treasury Department is withholding financial incentives for three servicers: Bank of America, NA; J.P Morgan Chase Bank, NA; and Wells Fargo Bank, N.A. Treasury will not withhold financial incentives owed to Ocwen Loan Servicing, LLC for this quarter as their compliance results were substantially and negatively affected by a large servicing portfolio acquired during the compliance testing period.