FOR IMMEDIATE RELEASE
December 15, 2016
NMS Monitor reports SunTrust failed one test in Q1 2016; HSBC failed none
Joseph Smith reports on HSBC and SunTrust’s NMS borrower treatment rules and
HSBC’s consumer relief
RALEIGH, N.C. – Joseph A. Smith, Jr., Monitor of the National Mortgage Settlement (NMS), reported on HSBC’s and SunTrust’s progress with the NMS requirements.
SunTrust failed one test during the first quarter of 2016 related to the collection of default-related fees. The fees include property preservation fees, valuation fees and attorneys’ fees. Earlier this year, the Monitor determined SunTrust has completed 69 percent of its consumer relief obligation. These are the Monitor’s third reports on SunTrust. An update on SunTrust’s consumer relief will be included in an upcoming report in early 2017.
These reports are the Monitor’s first on HSBC. The reports cover the servicer’s progress toward its consumer relief requirements as well as its compliance with the NMS’s rules to guide borrower treatment. HSBC did not fail any of the Monitor’s tests on compliance, and the servicer has been credited with $222,601,311 in consumer relief towards its total obligation of $370 million.
“HSBC has completed 60 percent of its consumer relief obligation and did not fail any of its tests during the first half of 2016 on how it communicates with and treats borrowers,” said Smith. “SunTrust failed one metric in the first quarter of 2016 related to the collection of default-related fees. I will continue to monitor HSBC and SunTrust’s compliance with the NMS servicing standards and will report on my review to the Court and the public in early 2017.”
Smith’s reports are a summary of reports he filed with the Court. These summaries include HSBC’s consumer relief through April 30, 2016 and HSBC and SunTrust’s metrics testing results from the first half of 2015. These reports, as well as past reports, can be found on Smith’s website, www.mortgageoversight.com.
About the Office of Mortgage Settlement Oversight
More information about the National Mortgage Settlement is available at www.nationalmortgagesettlement.com. Further information about Joseph Smith and the Office of Mortgage Settlement Oversight is available atwww.mortgageoversight.com.