Attorney General Masto Announces Four New Procedures Banks Must Follow to Help Distressed Homeowners Under National Mortgage Settlement

October 2, 2013

Carson City, NV – Nevada Attorney General Catherine Cortez Masto and her colleagues on the National Mortgage Settlement’s Monitoring Committee announced that the nation’s five largest bank mortgage servicers will implement new procedures to improve the process for struggling homeowners seeking loan modifications.

    “After hearing from Nevadans, including HUD certified housing counselors, legal aid groups, and my counterparts around the country, we share many similar issues of concern – that banks are not providing timely and effective assistance needed,” said Masto. “I am pleased with the work that members of the Monitoring Committee, my peers, and Monitor Joseph Smith have secured with the banks. These additional metrics will ultimately help homeowners and hold banks accountable. I encourage Nevadans to take advantage of the free services provided by Home Again Nevada.”

      Joseph A. Smith, Office of Mortgage Settlement Oversight Monitor, released the metrics. The new metrics will:

      1. Ensure that the banks provide customers contact information for new single points of contact (SPOC) and that they implement procedures that evaluate and remediate SPOC performance. Compliance testing starts Jan. 1, 2014.
      2. Test the servicers’ monthly billing statements to confirm that accurate, detailed information is provided to borrowers. Compliance testing starts Jan. 1, 2014.
      3. Ensure that the banks do not reject a borrower’s loan modification application or proceed with a foreclosure for at least 30 days while the borrower is responding to requests for additional documents. Compliance testing starts April 1, 2014.
      4. For those borrowers whose applications are denied, banks must properly communicate that denial and the loss mitigation alternatives available to the borrower. Compliance testing starts April 1, 2014.

        Homeowners in need of assistance should contact the Home Again: Nevada Homeowner Relief Program, initiated by General Masto, at 1-855-HLP-4-NEV (1-855-457-4638) or Home Again Nevada is a program that makes it easier for Nevadans to determine what state or federal assistance may be available to them with a single “one-stop” free resource.