When the $25 billion national mortgage settlement was struck in early 2012, regulators bragged that the top five mortgage servicers would be held responsible for their conduct, particularly the "robo-signing" of foreclosure documents.

But it turns out that mortgage bondholders paid for nearly one-quarter of the settlement, or $5 billion at a minimum. These investors have long complained to regulators that the settlement was poorly structured because large bank servicers got credit for principal reductions and loan modifications they did not pay for themselves.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.