Wells Fargo Home Mortgage is embracing residential reforms mandated by the new national servicing standards, regulatory consent orders and the Dodd-Frank Act, according to an executive at the nation’s largest servicing shop.
The reforms should not be dismissed as a “bunch of regulatory changes for the sake of regulatory change,” executive vice president Mary Coffin told National Mortgage News.
“As an industry we have to embrace what we have learned during this crisis,” she said.
Coffin was the keynote speaker at the Western Loan Serving Conference in Las Vegas Monday where she stressed that Wells Fargo is focused on implementing the changes and making sure the organization understands the importance of getting it done on time and “getting it done right.”
NMN did not have a reporter in Las Vegas, but she told the news organization that the bank is going “above and beyond” what is required. “We are reviewing all of our practices and all of our operations, using this opportunity to take a holistic view of our whole business.”
The banking giant also has entered into discussions with Consumer Financial Protection Bureau (CFPB) officials about how the servicing business is managed and to share best practices. “We are working with them,” Coffin said. “It is a good dialogue and good conversation.”
The CFPB is expected to propose new servicing regulations soon. The agency is focused totally on the consumer to ensure they are treated fairly. The servicing industry needs to “embrace the consumer,” the EVP said, saying it can be done by simplifying the process and making sure it’s clear and understandable to the homeowner.
In the midst of all this change, she noted, now is not time to revamp the pooling and servicing agreements or the way servicers are compensated.
Wells Fargo and other top-ranked servicers still have to complete the implementation of the national servicing standards and Office of the Comptroller of the Currency consent orders. “We have made a lot of changes. We have more changes to make,” Coffin said.