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Th e M Rep o RT | 45 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SERVICING The laTesT settlement monitor: most Banks Hitting compliance marks only one servicer failed any of the metrics established as a result of the National Mortgage Settlement. a ccording to examina- tion results released last month by the Office of Mortgage Settlement Oversight, five of the six banks met or exceeded expectations across 29 different compliance metrics in the third and fourth quarters of 2013. The list of fully compliant servicers include four of the banks named in the 2012 settlement—Wells Fargo, Bank of America, Citi, and JPMorgan Chase—as well as Ocwen, which has acquired nearly 80 percent of servicing rights in a portfolio formerly held by ResCap. "I'm pleased to report that these servicers passed all tests during this reporting period," said settlement monitor Joseph Smith. Not faring as well was Green Tree, a wholly owned sub- sidiary of Walter Investment Management Corp. that acquired approximately 18.5 percent of the ResCap portfolio. Tested only for the fourth quarter, the servicer came up short in eight metrics, including complaint response timeliness and third party vendor management. In a statement issued by Walter Investment, chairman and CEO Mark O'Brien said, "Green Tree is committed to maintaining a highly compliant environment that focuses on high standards of customer service. We are dedicat- ed to addressing these issues in a timely manner and are confident that the implementation of our corrective action plans will result in a positive outcome during our next review cycle." The company added it has already fixed many of the root causes of any non-compliance. Overall, Smith said he is encouraged by the latest test- ing results, which "show that, under the Settlement, servicers are addressing problems quickly and effectively through focused corrective action plans." However, he added that "work still remains to ensure that the ser- vicers treat their customers fairly," and said his office has already started testing compliance on four new metrics surrounding the loan modification process, single point of contact, and billing accuracy. Responding to the report, HUD Secretary Shaun Donovan issued his own statement, say- ing, "Today's report from the Independent Monitor is another sign that the National Mortgage Settlement's compliance structure is providing American consumers with better service and unprec- edented protections." Donovan added, "I look forward to the Monitor's next report, which tests the banks on four new metrics issued in October. These will help the Monitor measure and ensure that the banks are doing a better job sending notices and communicat- ing with struggling homeowners in a timely manner." cFPB tops list of lender concerns For the third straight year, the Bureau weighs heaviest on lenders' minds. l enders also reported is- sues from the combined Truth in Lending (TIL) and Good Faith Estimate (GFE) disclosure forms as top concerns, with 54.8 percent of respondents marking the issues as a high concern. "Compared to last year's survey, lenders appear more weary than ever of the Consumer Financial Protection Bureau's (CFPB) rules, as non-CFPB issues are seen as increasingly lower priorities," said Leonard Ryan, founder and president of QuestSoft. "It seems the message of the survey is that for many lenders, the mortgage environ- ment has become highly depen- dent on the box of lending that the CFPB rules are creating." CFPB rule-making has grabbed the top spot in the survey every year since 2012, the first year the survey was available to comment on the newly created regulatory body. Furthermore, CFPB rules that haven't even been finalized or publicized raised concerns among lenders. Vendor management was a growing concern for lenders, while Real Estate Settlement Procedures Act (RESPA) fee toler- ances (45 percent high concern) and Fair Lending exams (40 per- cent high concern) were also atop the list of lender's worries. "The timeframe between regulatory rule announcements and implementation dates simply doesn't allow enough leeway for lenders to rework processes and implement new technologies in order to achieve compliance," Ryan said. "Lenders will continue to seek counsel and integrate with vener- able compliance providers, in ef- forts to prepare for audits and meet industry compliance standards."