Rules proposed for the mortgage-servicing industry, coming after a $25 billion legal settlement, could further erode the profits banks make from the business of collecting loan payments, pushing the job to more specialized firms, The Wall Street Journal reported today. A federal consumer regulator is expected to propose today the first set of national standards for the mortgage-servicing industry, which has been riddled with problems in the wake of the housing bust. Under the Consumer Financial Protection Bureau's proposal, loan servicers would be required to evaluate homeowners' applications for loan-assistance within 30 days of receiving an application and would be barred from going ahead with a foreclosure until a final decision has been reached on a borrower's application for help.
