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Transparency around the process is a good for lenders, too, as it will improve the quality of loan applications, increase approval rates and make the lending process more efficient and profitable.
Federal regulators reckon that the quality of loan servicing -- the interaction between borrowers and companies that process their monthly loan payments -- often determines whether a borrower defaults.
But Barmak Nassirian, director of federal relations and policy analysis for the AASCU, said his group has become "increasingly alarmed about the quality of loan servicing offered by the department's contractors".
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This move reflected improvements in the quality of loans.
Even the mortgage business showed signs of life, as the bank said the quality of loans improved.
Loan impairments fell 40 percent, to £1.95 billion, as the quality of loans, especially in the retail and commercial banking division, improved.
When a customer signed up for Veri-tax's service, it was typically to spot-check the quality of loans after they were made, Mr. Summers said.
Mozilo paid a $67.5m penalty to the SEC in 2010 to settle charges that he misled Countrywide investors about the quality of loans being underwritten at the company.
"The quality of loans right now in terms of underwriting is the highest it's been in quite some time," Mr. Corr said.
And although the quality of loans written since the crisis has been high, banks fear they could be swamped with put-backs if the economy slows.
The law passed by Congress last year tried to assure that bankers would pay attention to quality of loans by forcing them to retain a stake.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com