Even in the case of a servicer who has every best intention of doing “the right thing,” the bottom-line incentives are largely misaligned with everyone else involved in the transaction, and most certainly the homeowners themselves. We don’t know yet what the end results will be for homeowners.
This bundling of responsibilities has been decided on for the time being, we now need to minimise conflicts of interest. As an organisation which is already up and running, the ECB could act as a midwife for the supervisory set-up.