Walter Improves Position on Mortgage Servicing Among Regulators

Walter Investment Management Corp., parent company of Reverse Mortgage Solutions and Security One Lending, has recently improved its position in the eyes of regulators, after heightened scrutiny in recent months that examined Walter’s mortgage servicing practices.

The company reported Tuesday its wholly owned subsidiary, Green Tree Servicing LLC, has passed all metrics tested by the Office of Mortgage Settlement Oversight during its most recent testing period. The metrics include two that are covered by corrective action plans.

“We are pleased with the results of the compliance report filed this morning by the OMSO,” said Walter Chairman and CEO Mark O’Brien. “We believe these positive results demonstrate Green Tree’s on-going commitment to providing the highest level of service to our consumers to ensure they have a smoother and more constructive experience with their servicer. We look forward to continuing to work with the OMSO as we strive to enhance the experience of our consumers.”

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The company has been examined in the last year by several federal agencies including the Department of Housing and Urban Development Office of Inspector General (HUD OIG), the Federal Trade Commission and the Consumer Financial Protection Bureau regarding its mortgage practices. Executives said in November they were preparing for more scrutiny in the coming months.

Under National Mortgage Settlement standards, Green Tree agreed to service a former Residential Capital portfolio it had purchased in January 2013. The compliance reports regarding the portfolio included test results for the first half of 2014, noting that eight corrective action plans proposed by Green Tree have been approved by the National Mortgage Settlement Monitor.

Written by Elizabeth Ecker