Pnc Bank Deposit Rules

Fitch: Settlement Ends Uncertainty for US Residential Servicers.

NEW YORK — Fitch Ratings believes the settlement between regulators
and 10 residential loan servicing companies is positive for those
companies as it is an end to the foreclosure review proceedings and will
allow for a refocus on the services they provide. The
Office of the
Comptroller of the Currency

 (OCC) and the U.S. Federal Reserve Board
announced the agreement on Jan. 7, 2013. It includes the payment of $8.5
billion, either as cash payments or assistance to help borrowers, and
effectively ends the case-by-case independent foreclosure reviews
mandated by the enforcement actions issued in April 2011.

In our view, the end to the extended, and recently controversial,
independent review process will allow these servicers to refocus on
completing other initiatives required by the various regulators, as well
as to reassign internal staff that have been involved with the lengthy
review process. In addition, the agreements makes the final compensation
structure clear and eliminates further cost for the independent reviews
that will allow the servicers to better establish their future cost to
service and potentially allow funds to be released for improvements in
the quality of their services. The additional scrutiny, mandated
changes, and costs have caused many institutions to re-examine
strategies and question their commitments to the market. Three of the 10
servicers under this agreement are no longer active in the U.S.
residential servicer market. Many have actively pursued a strategy to
offload non-agency and, in some cases, higher risk agency portfolios to
concentrate on new, low-risk products.

Fitch further believes that the industry as a whole has addressed
foreclosure documentation and process changes that resulted from
regulation and policy changes. However, we see a backlog of foreclosures
remaining to be processed.

The servicers included in this agreement who are also Fitch-rated
servicers include:
Bank of America

Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world.
, Citibank, JPMorgan Chase,
PNC

PnC Point ‘n Click
PNC Police National Computer
PNC People’s National Congress
PNC People’s National Congress
, and
Wells Fargo.

Additional information is available on www.fitchratings.com.

The above article originally appeared as a post on the Fitch Wire
credit market commentary page. The original article, which may include
hyperlinks to companies and current ratings, can be accessed at
www.fitchratings.com. All opinions expressed are those of Fitch
Ratings.

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