FDIC Confirms Steps to Ensure Compliance by Mortgage Servicers

Sheila Bair testifies before Senate Banking Committee, providing insight into the expectations of federal bank regulators with respect to mortgage servicing. Bair acknowledges a shared regulatory intent to use supervisory directives, formal and informal measures, to achieve compliance with state and federal laws and to ensure institutions have adequate internal controls and sound risk management procedures with respect to the foreclosure and modification of mortgages. For institutions having entered into loss-sharing agreements with the FDIC, Bair confirmed the FDIC is conducting a “Loan Servicing Oversight Audit” to ensure institutional compliance with state and federal foreclosure requirements.

Read Chairman Bair’s complete testimony

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