May 12, 2011

The Need for National Mortgage Servicing Standards

Testimony Before the Senate Committee on Banking, Housing and Urban Affairs, Subcommittee on Housing, Transportation and Community Development
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Chairman Menendez, Ranking Member DeMint, and distinguished members of the Subcommittee, thank you for inviting me to testify today. I have been asked to offer opinions on “The Need for National Mortgage Servicing Standards”

The recent crash of the housing market and the rise of unemployment led to a historic surge in serious delinquencies and requests for loan modifications, short sales, and related transactions. As a result, the residential mortgage servicing industry was overwhelmed. Going forward, it is helpful to recommend changes to both servicing and securitization industries so that they can avoid problems going forward as we attempt to revive the securitization market.