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Report Shows Banks Fail to Comply With Mortgage Settlement

“Four large U.S. banks have failed to comply with key elements of a landmark $25 billion mortgage settlement, an independent monitor said Wednesday.

The report shows that lenders continue to bungle their dealings with struggling homeowners seven years after the bursting of a national housing bubble.

Bank of America Corp., BAC -0.61%J.P. Morgan Chase JPM -1.05% & Co.,Citigroup Inc. C -0.97% and Wells Fargo WFC -0.44% & Co. each failed to meet at least one of 29 standards for providing timely and accurate relief to homeowners at risk of foreclosure, Joseph A. Smith Jr., the independent monitor responsible for overseeing the settlement, said.

The bank lapses show that some homeowners still face challenges despite an improving housing market and a legal settlement designed to provide more transparency and accountability from lenders.

“Delays in the foreclosure process result in homeowners falling further behind,” said Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, during a Wednesday news conference. “This is unacceptable.”

Mr. Donovan warned that banks that fail to correct continued missteps will face “serious consequences,” including “hauling them back into court.” ….”

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