Senate steps toward new mortgage servicing standard

The Senate Banking Committee will hold a hearing Tuesday to develop a new national mortgage servicing standard.

In January, federal regulators announced a new initiative to develop a set of servicing standards following weaknesses in the process that arose last year.

The industry immediately began pushing for a unified approach, and regulators are at work with the 50 state AGs to align new requirements, especially for servicing nonperforming loans.

Already, Congress is hearing from those who would like to be exempted from guidelines they see as too burdensome, especially for smaller institutions.

Read on.