Since November, Union Bank has also allowed borrowers to roll the costs of a refinance, like the appraisal fee and loan processing fee, into the mortgage.

WSJ: Refinancing Deals Get Sweeter

It plans to dramatically overhaul 32 Federal agencies to improve performance in key services, such as expediting student loan processing and speeding aid to disaster victims.

WHITEHOUSE: Testimony of Jacob Lew

According to Loan Processing Services, 458, 000 loans that were 90 days past due deteriorated further in March, more than twice the 225, 000 foreclosures started that month.

FORBES: Entrepreneurs

But many financial-aid administrators also say private lenders do a better job than the government at processing loan applications and handling collections.

FORBES: No Loan Left Behind

Commercial Lending X has not only relieved banks of much of the loan underwriting and processing (cost-center) burden, they have also found creative ways to increase bank revenues by brokering denied loans to generate referral fees from other lending institutions, by finding participants to help larger loan transactions get done and by bringing banks new customers.

FORBES: Be A Hero: Turn A Cost Center Into A Profit Center

There is no processing of the preliminary loan file and there is no underwriting review.

FORBES: Why Getting Pre-Approved For A Mortgage Is A Sham

Loan servicing is about transaction-processing, not customer service, points out Guy Cecala of Inside Mortgage Finance, a newsletter.

ECONOMIST: Mortgage restructuring

That includes everything from processing checks and opening new accounts to mitigating fraud and evaluating loan applications.

FORBES: The Financial Services Sector Looks To The Cloud

These reforms will not only fix the problems we found in foreclosure processing, but will also correct failures in governance and the loan modification process and address financial harm to borrowers.

FORBES: Banks Settle, Will Pay Back Homeowners For Faulty Foreclosures