Walter Investment Mgmt Shares Edge Higher Off $29 Level as Co. Issues Release with Response to Summary Compliance Report from OMSO, Said Green Tree Did Not Meet Thresholds on Eight of 29 Tested
Walter Investment Management Corp. (NYSE: WAC) ("Walter Investment" or the "Company") issued a response to the Summary Compliance Report issued today by the Office of Mortgage Settlement Oversight.
In connection with its purchase of mortgage servicing rights from Residential Capital LLC in January 2013, Green Tree Servicing agreed to service the loan portfolio according to the 300-plus standards of the National Mortgage Settlement ("NMS"). Green Tree also agreed to an accelerated schedule in which all 29 measured metrics were to be implemented in one reporting period as opposed to a staged implementation utilized by most other entities subject to NMS standards. Today the Office of Mortgage Settlement Oversight ("OMSO") released a summary of six compliance reports filed with the United States District Court for the District of Columbia, which includes the test results for Green Tree Servicing from October 1, 2013 to December 31, 2013. As is noted in the report, Green Tree did not meet the thresholds on 8 of 29 metrics tested. The NMS provides an opportunity for servicers to cure metrics through corrective action plans approved by OMSO. As previously reported in the Company's Form 10-Q filed on May 8, 2014, corrective action plans are under development and once approved by OMSO, Green Tree will implement the plans and the metrics will be retested. Green Tree has already remediated many of the root causes of the non-compliance and is committed to achieving full compliance when retesting occurs.
Mark J. O'Brien, Chairman and Chief Executive Officer of Walter Investment said, "Green Tree is committed to maintaining a highly compliant environment that focuses on high standards of customer service. We are dedicated to addressing these issues in a timely manner and are confident that the implementation of our corrective action plans will result in a positive outcome during our next review cycle."
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