Report: Banks are meeting mortgage service rules; jury still out on Ocwen

Four giant banks that signed a $26-billion settlement of investigations into abuses of troubled mortgage borrowers appear to be complying with 304 best-practice standards imposed as part of the agreement, according to reports filed in federal court in Washington.

But the monitor for the 2012 national mortgage settlement did not issue an expected report on giant bill collector and foreclosure specialist Ocwen Financial Corp., saying an investigation into its compliance practices is not yet complete.

Wells Fargo & Co., JPMorgan Chase & Co. and Bank of America Corp. passed every test of their procedures for handling borrowers who fall seriously delinquent on their home loans or are in foreclosure, reported Joseph A. Smith Jr., monitor of the national mortgage settlement.

Citigroup Inc. detected its own failure to comply with one loan-modification practice and was already correcting the flaw when the bank alerted Smith to the problem, he said Tuesday.

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