Banks Continue Dual-Tracking Practices after Mortgage Settlement

by San Antonio Attorney

The five banks that agreed to pay a $25 billion settlement to change foreclosure practices are employing dual-tracking servicing tactic, according to a recent report. Dual-tracking is an abusive practice that forces families out of their homes which they believed their banks were helping them to save.

Katherine Porter, a law professor at the University of California-Irvine, provided a first look report at the development in the banks’ compliance with the deal. Ally Financial, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo have yet to initiate discernible reforms in their practices as part of the settlement deal.

According to Bank of America, they have promptly fulfilled all servicing requirements and will satisfy the remaining requirements in accordance to the settlement.

The other four banks that were part in the settlement did not respond right away to a request for comment.

Porter, who was appointed to oversee the settlement by the state attorney general, said she aimed at dual-tracking since it is a very detrimental servicing practice that the banks were supposed to change. Dual-tracking also implies wider institutional issues that have seriously affected the foreclosure industry for many years, which includes a communication gap between different departments at mortgage lenders, Porter said.

People lose their homes because of dual-tracking, according to Porter.

She has a tempered optimism that the banks involved will end the dual-tracking and execute other required changes.

The report deals only with homeowners in California, but provides some significant information. In the last six months, 1,482 complaints from families were sifted through by Porter’s team. Out of all the complaints, about 224 complaints involved dual-tracking, based on her report.

The banks were given a six-month deadline because such reforms call for substantial retooling. However, families suffer as they wait for the changes to be implemented.

The settlement deal includes that the banks write down $10 billion in mortgage debt and provide other assistance for homeowners. That aid has been slow as well.

 

– If you fall behind on your mortgage repayments, the lender will take legal actions to repossess your home. If you are facing foreclosure, talk to a San Antonio Real Estate Attorney to discuss all of your options to save your home. It is very important to act right away in order to avoid a foreclosure.

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