Is it working

Written By: Theresa Furzland

With the interagency review requiring reform, review of loan files and now the media attention brought by the Occupancy protests are all putting pressure on the large servicers to “clean up their acts”. It seems we may be seeing some positive progress in the form or realistic reform.
The Interagency Review which was issued in April calls for each of the 14 regulated servicers to conduct a review of approximately 4.5 million foreclosures that were processed during 2009 and 2010. In addition the Agencies are calling for servicers to establish a “single point of contact” for borrowers and review of their servicing and foreclosure processes. The review calls for uniform standards that would clear up a lot of the current confusion and discrepancy in regulations.

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Coincidently, or not, we recently are hearing the improved numbers on HAMP and HAFA modifications loan work outs from the likes of Wells Fargo and Bank of America. Are they actually cleaning up their acts?
The negative attention brought by the Robo-Signing scandals last year actually opened a can of worms that just maybe needed to be opened. While the Review states that incidents of Robo-signing and document custodian issues were found, they did not seem to be the largest concern. Much more emphasis was put on having sufficient staff and training of that staff of proper policies and procedures.

The stress, in the summary of the Review, was put on the need for a uniform national standard. This has done well for the Originator Licensing requirements and (with quite a few bumps) the appraisal industry. There have already been improvements to the various relief refinance programs, as one fails another idea seems to come forth that is just a little better (but still not perfect)
As one who lived through the bubble, into the burst and am still here as we see what happens to the pieces I would say that the lack of knowledge (or concern for) regulations and laws was one of the biggest problematic causes of the “crisis” and is the area that most needs to be addressed as new standards are set.

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We do NOT need to create new regulations, agencies, initiatives, programs, etc etc etc
We DO need to enforce the laws that exist. We need to hold each and every person in a transaction accountable for their part in that transaction. From the borrower that needs to research and be aware of the product they are purchasing, to the originator who needs to ethically and fairly offer the borrower available programs, to the processor/underwriter/closers who need to be current and knowledgeable and diligent in completing their jobs. To the marketing departments, the secondary market servicers and completely down the line….to the regulators, to our congressman and the president, to assure that we do our part in the process to the best of our abilities and without harm to anyone.
It will only work in the end if EVERYONE does their part to conform to the above standards that apply to them.

About The Author

Theresa Furzland - As an NAMP® staff writer, Theresa Furzland serves as an instructor for Loan Processor University ( Theresa has 25+ years of experience ranging from origination, processing, closing and post closing. She is currently a producing Branch Manager for LendSmart Mortgage, LLC and own and operate Willow Wood Mortgage Services, Inc. If you're interested in becoming a writer for NAMP®, please email us at:

Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.