JPMorgan, vowed to expand training after a review found that the mortgage-servicing unit “struggled to absorb rapid staffing growth and, in many cases, hired representatives with little or no home lending industry experience.” Bank of America, said compliance operations were understaffed as of midyear 2011 and that some people lacked the skills or stature needed to do their jobs.
What a surprise.
But wait. The good news is that JP Morgan “…started a new training program for its default underwriting staff, and after 2,900 employees attended an average of 8 hours of instruction, the average score on a test improved to 92.2 percent from 81.7 percent.”
Really? Eight whole hours of training? How ever did those poor processors manage to get through the day?
With the mortgage meltdown continuing, you’d think – by now – that the Banks would have had plenty of time to hire ‘trained’ staff. After all, what about all those real estate agents and mortgage brokers that are out of work? They know something about real estate loans, don’t they?
Could it be that the Banks are in no hurry to clean up the mess, becasue there is a SLIGHT recovery, and the longer they wait, the less they might lose? Or can it be that there is just way too much garbage still out there, and the Banks don’t want to staff up incur the additional costs on the mounting bad losses?
One thing for sure, with help like this, it’s no wonder loan modification paperwork gets lost – 4 or 6 times – and Short Sales still take 6 months to close.
From Bloomberg Reports:
A point about recovery, lots of garbage still out there, etc: Seems many situations are going to be resolved without foreclosure or short sale. HARP, HAMP, proprietary mods, and bulk loan sales will bail out many of these upside-down or defaulted “homeowners”. So don’t expect a big “wave” of foreclosures, but there certainly is a lot of extend n pretend. 90% of scheduled trustee sales, day in and day out, are cancelled or postponed (typically ~ 80% postponed; ~ 10% cancelled). So banks are not “holding” REOs, they are however refusing to foreclose at all.