Thursday, February 17, 2011

Chase, BofA, (et al) To Be Slammed Over Mortgages

Couldn't happen to nicer guys. /sarcasm

Late last year, the federal banking agencies began a targeted review of loan servicing practices at large financial institutions that had significant market concentrations in mortgage servicing. The preliminary results from this review indicate that widespread weaknesses exist in the servicing industry. The agencies intend to report more specific findings to the public soon, but I can tell you that these deficiencies pose significant risk to mortgage servicing and foreclosure processes, impair the functioning of mortgage markets, and diminish overall accountability to homeowners.

I'm sure this has been said, but I'll say it again because I have seen little to no evidence of improvement in the operational performance of servicers since the onset of the crisis in 2007--Fed Governor Bloom

In other news, Jamie Dimon of Chase complains that Fan/Fred are "disasters". He oughta know one when he sees one.

HT: CalcRisk, Bloomberg

No comments: