Mela Capital Group Announced The Expansion Of Its National HAMP And Foreclosure Due Diligence Auditing Team.

Online, April 15, 2011 (Newswire.com) - -- Today Mela Capital Group announced the expansion of its national HAMP and Foreclosure due diligence auditing team. New hires include key management personnel and experienced credit risk underwriters to be located regionally throughout the US. The expansion comes at a time where financial services giants respond to the newly released Federal Reserve Bank Formal Enforcement Action mandated to address a pattern of misconduct and negligence related to deficient practices in residential mortgage loan servicing and foreclosure processing.
MCG CEO, Cindi Dixon, adds "We have seen a notable increase in demand for our services and have recently taken on several new national accounts."

The mortgage loan deficiencies addressed by the Federal Reserve represent 'significant and pervasive compliance failures and unsafe and unsound practices at these institutions'. They went on to say monetary sanctions in these cases are appropriate. These monetary penalties will be in addition to the corrective actions that the banking organizations are expected to take pursuant to the enforcement actions.

According to Ms. Dixon, "This action, while far reaching, is very timely. In partnership with Federal regulators, Banks and Servicers are aggressively working their way through the issues and oversights that lead to the mortgage meltdown. There is a pervasive need for a partnership between the financial services industry and transparent, experienced third party quality control service providers to assist in the workout of the volumes of loans in question. They are not looking for easy answers but seeking the right answers."

Included in the mandate, the Federal Reserve will enforce revisions to certain residential mortgage loan servicing and foreclosure processing practices. Each servicer must, among other things, submit plans acceptable to the Federal Reserve that:
• ensure that foreclosures are not pursued once a mortgage has been approved for modification, unless repayments under the modified loan are not made;
• establish robust controls and oversight over the activities of third-party vendors that provide to the servicers various residential mortgage loan servicing, loss mitigation, or foreclosure-related support, including local counsel in foreclosure or bankruptcy proceedings;
• provide remediation to borrowers who suffered financial injury as a result of wrongful foreclosures or other deficiencies identified in a review of the foreclosure process; and
• strengthen programs to ensure compliance with state and federal laws regarding servicing, generally, and foreclosures, in particular.

Since 2005 MCG has been an industry-leading due diligence quality control service provider. "Our clients, who range from the largest banks and servicers, to regional mortgage bankers and credit unions, think of our services as a periodic loan quality check-up. They have one thing in common: they know it is better to take preventative measures to maintain the health of the enterprise than to face the pain of not having caught an issue early on. A minor glitch in the process, left unaddressed, can create a major, costly catastrophe down the line. The damage to reputational risk and the accompanying legal problems remain long after the problem is resolved".

To learn more about these new federal regulations contact Mela Capital Group at 866-382-7566.

Cindi Dixon, CEO
Mela Capital Group
Margate, FL 33063
866-382-7566 [email protected]
http://melacapitalgroup.com/v2/